1383. Whether valuation fixed in one assessment year cannot be disturbed for two succeeding years – Para III(b) of Circular 3(WT), dated 28-9-1957 superseded

Attention is invited to instructions contained in Para III(b ) of the Board’s Circular No. 3(WT) of 1957, dated 28-9-1957 wherein it was stated that the valuation fixed in one assessment year need not be disturbed for two succeeding assessment years except in certain circumstances. The said circular was withdrawn by the Board’s Letter No. 319/12/74-WT, dated 5-4-1974. Certain refer­ences have been received in the Board to the effect that some assessees rely on Circular No. 3 to argue before Valuation Offi­cers that there is no valid reason for enhancing the value adopt­ed in an earlier assessment year by the Wealth-tax Officer in cases where there is no substantial improvement or extension to the property. The matter has been considered in the Board and it clarified that, in view of insertion of section 16A in the Wealth-tax Act, 1957, and the Board’s Circular No. 96, which, inter alia, states as under:

“Under this provision, the Wealth-tax Officer may refer the valuation of any capital asset to the Valuation Officer in a case where the assessee has got the asset valued by a registered valuer and the value returned is in accordance with the estimate made by the registered valuer if he is of the opinion that the value as estimated by the registered valuer is less than the fair market value of the asset. Other cases in which reference may be made to the Valuation Officer would be where the Wealth-tax Officer is of the opinion that the fair market value of the asset exceeds the value of the asset as returned by more than 331 /3 per cent of the value returned or by more than Rs. 50,000, whichever is less, or where having regard to the nature of the asset and other relevant considerations, the Wealth-tax Officer considers it necessary to do so.”

The instructions contained in para III(b) of the Board’s Circular No. 3 of 1957 stand superseded. In view of what is stated above and particularly the Board’s Letter No. 319/12/74-WT, dated 5-4-1974, it is obvious that para III(b) of Circular No. 3 WT of 1957 is no longer in force.

Circular: No. 384 [F.No. 319/8/84-WT], dated 6-7-1984.

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Category : Income Tax (25333)
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