Rinmat Regional Management and Technical Literary Society vs Valuation Officer Income Tax Office and Others

The petitioner before this Court Rinmat Regional Management and Technical Literary Society, Allahabad has filed this writ petition for quashing of the notice issued by Valuation Officer, Income Tax Office, Allahabad dated 17.2.2010 (Annexure No. 6 to the writ petition) wherein the petitioner has been afforded one last opportunity for submission of the documents in DVO''s Office, Kanpur latest by the date of inspection i.e. 3.3.2010.

This notice is sought to be challenged on the ground that the assessment proceeding of the relevant year i.e. 2005-06 has already been completed under an order of the assessing authority dated 28.12.2007, and therefore, the notice is bad in view of the law laid down by the Division Bench judgment of the Bombay High Court in the case of Rallis India Limited Vs. Deputy Commissioner of Income Tax Range 1(3), District Valuation Officer I and Union of India (UOI), (2006) 4 BomCR 76 : (2006) 204 CTR 45 : (2006) 284 ITR 159 : (2006) 4 MhLj 192 : (2006) 154 TAXMAN 73 wherein the Bombay High Court has observed that although Section 55A does not prohibit the ascertainment of the fair market value of the capital asset of the assessee for the purposes of capital gains after the assessment order has been passed by the Assessing Authority but such prohibition necessarily follows, inasmuch as, the valuation officer''s report is obtained for the purposes of completion of the assessment and nothing beyond it.

Judged in the aforesaid legal background, we have to examine as to whether the assessment proceeding of the year 2005-06 against the assessee have been completed so as to sustain the submission made before us or not.

From the assessment order of the year 2005-06 dated 28.12.2007 copy whereof is annexed as Annexure SA-1 to the supplementary affidavit filed on behalf of the petitioner himself we find that following note has been made in the assessment order:--

"In the case of Sanskar International School, reference u/s. 142A has been made to the DVO, Kanpur. The report is awaited. Action if found necessary shall be taken on receipt of report."

It is, therefore, clear that necessary action to be taken on receipt of the DVO''s report has been left open to be considered in the order of assessment itself.

We may record that it was because of the petitioner that the inspection by the DVO could not take place as he prayed for time, this is as apparent from the letter of the petitioner himself dated 29.12.2007 enclosed at page 27 to the writ petition.

We are, therefore, of the opinion that the facts of this case are clearly distinguishable to the vis-�-vis the facts in the case of Rallis India Ltd. v. Deputy Commissioner of Income Tax and others (supra). There is no merit in the submission made on behalf of learned counsel for the petitioner.

Learned counsel for the petitioner also referred to the judgment in the case of Assistant Commissioner of Income Tax v. Dhariya Construction Company for the proposition that the information of the DVO per se may not be in an information for the purposes of reopening of the assessment under Section 147 of the Income Tax Act.

Learned counsel for the department in reply referred to the judgment in the case of Sunder Carpet Industries Vs. Income Tax Officer and Another, (2010) 235 CTR 161 : (2010) 324 ITR 417 wherein it has been held that the reassessment proceeding on the basis of departmental Valuer''s Report can be initiated. He also relied upon the judgment in the case of Commissioner of Income Tax Vs. Lucknow Public Educational Society .

We may not enter into the issue so raised at this stage as all such issues may be agitated during the reassessment proceeding before the assessing officer, who shall examine all aspects of the matter in accordance with law.

Writ petition is dismissed.

Interim order, if any, stands discharged.