JUGGL LAL KAMLAPAT BANKERS & ANR. versus WEALTH TAX OFFICER SPECIAL CIRCLE C-WARD KANPUR & ORS.

TULZAPURKAR,. J. This appeal by certificate is directed against the judgment and order dated 4th October, 1977 of_ the A\lahabad High Court whereby the High Court upheld the reference.made by tlie Wealth Tax Offic~r (Respondent No. I) to the Valuation Officers (Respondents Nos. 2 and 3) for valuing cerfain buildings belonging ·to the appellant No. 1 firni as well as the notices issued by the Valuatio·n Officers to appellant No.2 in furtherance of the Reference. The appellants had by means of a writ petition challenged the reference. as well as the notices on certain grounds and had prayed for a manda- , mus restraining respondents Nos. 2 and 3 from valuing the buildings. The writ' petition having been dismissed, the appellants have come up in appeal to .this Court. •

p. 38, margin B

Most of the material facts giving rise to this appeal are not in dispute and may briefly be stated as follows : Appellant No. 1 (M/s. Juggi Lal Kamlapat, Bankers) is a partnership firm. Appellant No. 2' (Padampat Singhania) was .one of the partners in the firm in his capacity as a 'Karta' of a Hindu Undivided Family upto 15·3· 1972. He was being assessed to wealth tax in the status' of H.U.F. ·and the assets so assessed for wealth tax included the interest of the family in appellant No. 1 firm. For the assessment years I 967· 68 .to 1972-73 wealth-tax returns were submitted by appellant No. 2 in the status of H.U.F. and_ therein the family's i1:~erest in appellant No. J firm was included. Since appellant No. l firm owned a number of buildings in Kanpur in the retur;1s so submitted the book-value of those buildings had been adopted by appellant No.2 for valuing the interest of the family in appellant No. 1 firm. Respondent No. 1 felt that the market value of those buildings was much. m0re than such book-value. He, therefore, referred the question of valuation. of those buildings to respondents Nos. 2 and 3 (the concerned Valua· tion Officers) under s.16A of the Wealth Tax Act 1957 (hereinafter referred to as 'the Act'). Respondents Nos. 2 and 3 issued. notices under s. 38A'(l) (b) of the Act to appellanfNo. 2 intimating that they would inspect the buildings for determining the fair market value thereof and requested him to afford necessary facilities for such inspection and to produce certain records connected with those buildings. On receiving the notices appellant N.o. 2 realised that respondent No.I had referred the question of valuation ·of the concerned buildings to respondents Nos. 2 and 3 under s. 16A of the Act and that the notices issued by respondents Nos. 2 and 3 wer~ in furtherance of such reference. On 9th of September, 1974 appellant No.2 addressed a letter to respondent No. I contending that none of the properties referred to the Valuation Officers belonged to him and that the referehce to them was unauthorised and the same should be withdrawn. He also addressed letters to respondents Nos. 2 and 3 in which he contended that reference made to them by respondent No.I was inv1lid and requested each one of them to return the referern;e back to the Wealth· Tax Officer. Since thesr c~ntentions were not accepted by the respondents, the appellants filed a writ petition in the High Court challenging the reference made by respondent No. I as well as the•notices issued by respondents Nos. 2 and 3.

pp. 38–39, margin D

On behalf of the appellants the following contentions were urged in support of the writ petition : (I) For the assessment of appellant No. 2, respondent No. I could not refer to respondent' nos. 2 and 3 the valuation of building which did not belong to him but belonged to appellant no. i'firm: (2) ·the interest ofa H.U.l'. in a partnership firm was not exigibli: to wealth tax; (3) the interest of appellant no.' 2 in appellant no. I firm had to be valued in accordance with Rufo 2 of Wealth Tax Rules 1957 and hence s. 16A of the Act. had no application ; (4) the valuation of the concerned buildings forming part of the assets of the businass of appellant no. I firm had to be determined in accordance with the commercial principles under s.7 (2) (a) and not under s.9 (l) of the Act and (5) the resp011dcnts nos. 2 and J cciuld not issue the no.tices to appellant No.2 "' he was neither the owner of the buildings nor was in occup•tion thereof.

p. 39, margin C

In regard to the first contention the Hi'gh Court took the view that though it was true that a partner of a firm cottld.not claim owner: ship in specific properties belonging to the partnership firm either during the continuance of the partnersh~ or even on its dissolution but was entitled to get a share in the pr~fits 'during its continuance and was further entitled, upon its dissolution or bis retirement therefrom, to the value of his share in the surplus of the partnership assets left after a deduction of liabilities and prior charges on the date of dissolution or retirement, it was clear that having regard to s. 29 "or the Partnership Act (which enables 'a partner to transfer his interest in the partnership firm) and s.2 (e) and 4 (I) (b) of the Act the interest of a partner in the partnership firm will have to he regarded as a part of his net wealth under. the Act As regards the•second contention which was elaborated to the .etfeci that even if. the inierest of an individual in a partnership firm could be regarded as an asset within the meaning of s.2(e) of the Act, the interest of a H.U.F. in the partne'rship firm could not be regarded as such asset and was not, there- . fore, exigible to· wealth tax (for· whi<oh reliance was placed bn the . circumstances that under s.4 (!) (b) of the Act provision has been made for' determining the value of an individual's interest .in a partnership firm but no corresponding provis.ion obtains in the Act for inclusion ~f the interest of H.U.F. in a partnership firm for purpbses. of assessment), the High Court took the view that from the said circumstanlOJS relied upon it did. not follow that the interest of a H.U.F. in a partnership firm could not be regarded as • part of net .wealth of such family or was not liable to wealth tax, especially when the chai;ging provision namely, s.3 of the Act .expressly levi.ed wealth tax on the net ·wealth of every Hindu undivided family and tl]ere was no reason why its interest in a partnership firm, which was property, could not be regarded as a part of i.ts assets liable to the charge under the section. With regard to the third and fourth contentions the High Court held that Rule 2, sec. 7 and sec. 16A (I)

pp. 39–40, margin F

(4) (ii) had to be read harmoniously and Rule. 2 did not exclude the · . application of secs. 7 and, J 6A for valuing an asset of a partner in a partnership firm and that notwithstanding the non-obstante clauac contained in sec. 7 {2) it was an enabling provision giving a discretion to the Wealth Tax Officer either to value the assets of a busines8 Ma whole or valuing each asset thereof separately and in that behalf the Wealth Tax Officer had the power to refer such valuation to the Valuation Officer under sec. 16A. As regards the last contention the High Court negatived the same by .observing that appellant No. 2 as a partner. could be regarded as an agent of appellant No. 1 firm

p. 40, margin D

and the Valuation Officers could issue· Notices to him req·uiring hirn · to afford facilities fot inspection of the concerned buildings and to produce books, doc~ments and records relevant for the valuation of, those buildings. In this view of the matter the High Court dismis8cd the writ petition but its decision is challenged in this appeal.

p. 40, margin D

Counsel for the appellants raised substantially two cQntention• in support or' the appeal. In the first place counsel has contended that there is no provision for the inclusion of a Karta's interest. in a partnership firm in the H.t,J.F.'s net-wealth for wealth tax purpose• under the Act and this would be clear,from sec. 4 of the Act. Elaborating this contention counsel has pointed out that sec. 4 (I) i• applicable to the computation of the net-wealth of an indiTidaal an4

p. 40, margin D

OFFICrn(_Tulzapurkar, J.) 4i hat the said provision is a deeming provisicn whcreunder cc.rtain tassets though held in reality by some others are to be treated as beo nging to that individual and included in bis net \\calth fer purposes of his wealth ta!' assessment and one such deeming provision is to be found in cl. (b) thereof which provides that where the asse5'ee is a partner in a firm the value of his intere-st in a firm. determined in the prescribed manner shall be included iii computing tl1e r.et-wea1ti1 'of such individual and what is urged is that there is no provisicn to be found in ~he Act which provides for the inclusion of Karla's interest·in a firm iµ the H.U.F.'s. net wealth,_ Cou'nsel strenuously urged that but for the deeming provision which is to te found in cl. (b) even the interest of partner (in Us irdivic'1 ;,J capacity) wculd not have become includible in J1is r.et wealth. In cttfr wcrcis, according to counsel, there is a lacuna in the Act as regards the inclusion of a Karla's interest in the.partnership firm in his H ,u.F:·s: r.ct wealth and, therefore, the Department's attempt to include the interest of. appellant No.2 (as a I{arta) in appe;lant No.l's firm in the nct-weaJth 6f his H.U.F. is not warranted by any of the provisicrs of the Act. Secondly, counsel has urged tllat assuming that appellant No.2's i~terest {as a Karta of his H.U.F.) in appellant No. l's firm is exigible to the wealth-tax under the Act, the valuation of such intcresi being go'verned by sec. 7 (2) (a) of the Act read with Rule 'fA. of th Wealth Tax Rules, 1957 it is not open to the Wealth Tax Officer to refer the valuation of specific house properties belongirg tc the firm to the Valuation Officers under s. l6A of the Act; in fact, according to him, the valua.tion of the assets of the partnership business of appellant No. l as a whole having regard to its balance-sheets for the concerned years ought to have been undertaken by the Wealth Tax' Officer and as such the book values of the house properties as appearing in tho Balance Sheets ought to have .been accepted by him and, therefore, the reference made by the Wealth Ta" Officer to Valuation Officers as well as the notices issued by the latter being incompetent and unjustified in law, are ilable to be quashed. For the reasons which we shall presently indicate neither 9f the eontentioni has any substance and both a.re liable to be rejected.

p. 41

. In order to deal with the first contention mentioned above it will be necessary to set out the material provisions of s.4 of the Act. •lauses (a) (b) of sub-s. (I). of ~ec. 4 run as followi :-

p. 41, margin G

.. "Net wealth to inchuie certain assets :-

p. 41, margin G

4. (1) In computing the net wealth of an individual, there shall included, ae belongina to tt.at iadiviaual- ·

p. 41, margin G

COURT REPORTS • [1984) 2 (a) the value of assets which on the valuation date are · held-- ' · (i) by the spouse of such individual to whom such assets have been transferred by the.individual, directly or indirectly, otherwise than for adequate considera.tion or in connection with an

p. 42

agreement to live apart, or (ii) by a minor child, not being a married daughter, of such individual, to whom such assets have .been transferred by the indi~idual, directly or indirectly, otherwise

p. 42, margin B

· than for adequate consideration, or (iii) by a person or association of persons to whom such assets have been transferred by the individual directly or indirectly otherwise than for adequate consideration the immediate

p. 42, margin C

for ~r deferred benefit of the individual, his or her spou·se· or minor child (not being a

p. 42, margin C

married daughter) or both, or (iv) by a person or association of persons to whom such assets have been transferred by the individual otherwise than under an irrevocable

p. 42, margin D

transfer, or· · (v) by the son's wife, or the son's minor child, of such individu~I, to whom such assets have been transferred by the individual, directly or indirectly, on or after the 1st day of ·June, 1973, otherwise than for adequate considera-

p. 42, margin E

tion, whether the assets referred to in any of the sub-clauses aforesaid· are held in the form in which they were transferred or otherwise : .Provided that where the transfer of such assets or any part thereof is either chargeable to. gift tax under the Gift-tax Act, J 958 (18 of 1958), oris not chargeable under ;ection 5 of that Act, for any assessment year commencing after the 31st day of March,_ 1964 but before the Ist day of April, 1972, the value of such assets or part thereof, as the case may be, shall not be included in computing the net wealth of the individual; (b) where the assessee is a partner in a firm or a member of an association of persons not being a co-operative housing so~iety, the value of his interest in the firm or a~sociation determined in the

pp. 42–43, margin F

prescribed manner". ·

p. 43, margin B

. It is true that sec. 4 (!) deals with the co~putation of the net•

p. 43, margin B

wealth of an individual'and it is also true that same enacts n deeming • provision in the sense that certain assets which.do not in fact or in reality belong to that individu~l (the assessee) but . to some one else are to be treated as belonging to that individual and are to be included in his net wealth. But, in our view, a cart:ful reading and analysis of els. (a) and (b) thereof will make it clear that there is a great difference betwe-en the cases covered by sub-els. (i) to (v) of cl. (a) and the case covered by cl. (b) .. Cl. (a) refers to five situations in all of which the asset is held by some one other than the individual concerned (the assessee) (e.g. held by the spouse or minor child of such iudividual to ')'horn such asset.has been transferred by such individual directly or indirectly otherwise than for adequate co.nsideration, etc.) "3ud it is provided that such asset held by that some one else shall be treated as belonging to the assessee-a dee1iling provision in the real sense of creating a legal fiction, while under cl. (b) it is provided that where the individual assessee is a partner in a firm it is the value of his interest in the firm determined in the prescriped manner that is to be treated as belonging to him and is includible in his net-wealth.· In other words cl..(bj is not a deeming provision in the sense in which a deeming provision is made in cl. (a). It cannot be said that the interest of a partner in a firm does not belong to him; it in fact belongs to him and no legal fiction is required for treating it as belonging to him; and the-proper way to interpret cl. (b) would be that the deeming part of it relates to the quantum of his interest in the firm determined in the prescr\bed manner which is to be treated as_ belonging to him and includible in his net wealth. It i's impossible to accept the c01itention that but for cJ.. (b) of s.4 (!) the interest of a partner (where he happens to be an individual assessee) in a firm would not have been exigiblc to wealth tax under tbe Act. As we shall presently point out a partner's interest in a firm either in hi~ individual capacity or in his capacity as a Karta of H.U.F is otherwise exigible to wealth tax under the other provisions of the Act and the deeming provision contained in s.4 {I) (b) properly understood must be held to be referable to the quantification of his interest in the.firm determined in the prescribed manner that is made includible in his net-wealth. ~

pp. 43–44, margin C

Section 3 of the Act read with the definitions of "net-wealth" as given in sec. 2 (m) and '"assets" given in sec. 2 (e) clearly brings out · 'he exigibility of a partnel"'s interest in a firm either in his individual 'apacity or his capacity as a Karta of ·a H.U.F. to wealth t~x under •he Act. Section 3 which is a ·charging provision ru!ls thus "Charge of wealth-tax.

p. 44, margin A

3 .. Subject to the other provisions contained in this Act, ·there shall be charged for every assessment year commencing on and from the first day of April, 1957, a tax (hereinafter referred to 'as wealth-tax) in respect of the net wealth on the corresponding· valuation date of every individual, Hindu undivided family and company at the ra.te or rates specified in Schedule I." · Section 2 (m) defines "ne.t-wealth" thus : "net wealth" means the amount by which the aggregate.value computed in accordance with the provisions of this Act of • all the assets, wherever located, belonging to the assessee on the valuation d~te. i~cluding assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the.debts owed by the assessee on · the valuation d'!:te other than-- • (here follow three types of debts which are not to be reckoned with wh'ich we are not concerned)."

p. 44, margin C

Section 2 (e) defines "assets" thus : ...

p. 44, margin E

"a'ssets" includes property of every description, movable ·or immovable, · bu\ does not include---

p. 44, margin E

(here follow certain specified properties with which we ' are not concefned.)".

p. 44, margin G

On .reading the aforesaid provisions together it will appear altar ·that wealth-tax has been levied on the net-wealth of an individual

p. 44, margin H

(Tulzapurkar, J.) • 45 or a tt:u.F. meaning thereby the aggregate. value of all the assets belonging to such assessee minus all the debts owed by him. Under the definition of 'assets" property of every description; movab!C or immovable is included, and since ifcatinO.t be disputed and was not disputed before us that a partner's inerest in a firm eitqer in his individual capacity or in his capacity as a Karta ef a H.U.F. is property. the same would be includible in the .expressfon "assets" w.hich will have to be taken into accout while computing the net-.wealth of such individual or H.U.F. and on such net.wealth the charge of wealth tax . has been imposed under sec. 3. It is thus clear that there is no lacuna in the Act as regards the making of a Karla's interest (repre<enting his .H.U.F.) in the partnership firm exigiblc to wealth-tax. The first contention, therefore, must fail.

p. 45

The second contention of counsel for the appellant has been that even if it be held that appellant No. 2's interest (as a Karta of hio 'H. U.F.) in the appellant No l"s firm is exigfble to the tax under the Act the valuation of.such interest would be governed by (2) (a) of the Act read with Rule 2A of the Wealth Tax Rules 1957 and since it is a case of valuing such interest in the partnership business of appellant No. 1 firm. the Wealth Tax Officer while first valuing the

p. 45, margin B

assets of. the business should have, having regard to the ba.lance- . sheets of the said business us on the valuaticn dates, accepted the book . values of the specific house properties as appearing i~ the balancesheets and could not refer the valuation thereofto the Valuation Officers under sec. J 6A of the Act which being i.napplicable could 1wt be resorted to; in this_ connection reference was also made by counsel to sub-s (2) of sec, 4 whereunder it is provided that in making any rules with reference to' the valuation of the interest ref~rred to in cl. (b) of'sub-s. (1) (being a partner's interest in a firm) the Board shall have regard to the law rcrr the time being in force relating to the manner in which accounts are to be settled between partners of a firm on the dissohtion of a firm. The substance of the argument, in brief, has . been that sec. 7 (I) which enables the W~alth-tax Officer to determine the value of any asset, other than' cash, at the market prite thereof on the valuation date for the purposes of the Net is imapplicable to the ·instant case and, therefore, sec. 16A is not attracted and hence the valuation °reference made by the Wealth-tax Officer to the Valuation Officers regarding specific house properties is liable to be set aside. As we shall demonstrate presently, the contention proceeds on an entire misconception of .the relevant provisions of the 'Act and the Rules. · ·We have already indicated above that a p.artner's interest in a .firm, either in his individual capacity or as a Karla of a H.U.F., is property ot asset liable to-be included the net wealth of the concerned. assessee and is exigible to wc;alth-tax under the Act. Once that position is accepted it is clear that such asset will have to be valued for the piirpos~s of the Act and in this behalf Rule 2 (I) of the Wealthtax Rules, 1957 prescribes the manner of valuing such interest. It runs thus : •

pp. 45–46, margin D

"Valuation of interest in partnership or association. of persons.

p. 46, margin B

2. (I) The value of the interest of a person in a firm ofwhieh he is a partner or in an association of persons of which he is a member, shall be .determined in the manner provided herein'. The net wealth. of the firm or the association on the valuation date shall first . be determined. That portion of the net wealth of the. firm or association as is equal to the amount of its capital shall be allocated among the partners or members in the proportion in \vhich capital has been contributed by them. The residue of the net wealth of the firm or association shall be· "\located among the partners.or members in accordance with the agreement of partnership or association for the distribution of the assets in the. event of dissollition of the finn or association, or, in the absence of such agreement, in the proportion in which the. partner; or members are entitled to share profits. The sum total of the anwunts so allocated to a partner or member shall be treated as the value of the interest of that p1rtner or 1nen1bcr, in the finn. or association." .

p. 46, margin B

Th,~ aforesaid rule clearly sii.ys thaf' in order to _determi_ne valuation of a partner's interest in the firm', first the net wealth of the firm has to be determined, which determination, of course, is ·governed by sec. 7 of the Act and the rule goes on to provide as to how the net wealth of the firm so determined shall be allocated among the part;1ers of the firm, which allocated amount will be regarded as the v~lue of the interest of each partner in the tirm. Coming to _the· precise contention raised by counsel, the 1na.terial provisions of the Act and the Rulis having a bearing thereon would be sec. 7 (!), 7 (2) (a), •7 (3) and Rules 2A and 2B and these ar'.' as under "Value. of assests, how to be determined. 7. (1) Subject to any rules made in this behalf, the value -

p. 46, margin E

v. OFFlqR (Tulzapurkar, J.) of any asset, other than cash, for the purposes of this Act, shall be estimated to the price which in the opinion of the Wealth tax Officer it would fetch if sold in the open market on the valuation date .

p. 47

(Explanation . ......... , : ........................ )

p. 47, margin A

(2) Notwithstanding any thing contained in sub-section (I),- - (a) where the assessee is carrying on a business for which accounts are maintained by. him regularly, the Wealth tax Officer may, instead of determining separately the. value of each asset held by the assessee in such business, determine the net value of the assets of the business as a whole having regard to the balance sheet of such business as on the valuation date and making such adjustments therein as may

p. 47, margin A

be prescribed.

p. 47, margin C

(3) Notwithstanding any thing contained in sub section (I), where the valuatio.n of any asset is referred by the Wealth tax Officer to the Valuation Officer under section J 6A, the value of such asset shall be estimated to be the price which, in the opinion of the Valuation Officer, it would fetch.if sold in the open market on the valuation· date, or, in '110 ca:se of an asset being a house referred to in sun section (4). the valuation date 'referred to in· that sub section." Rules 2A and 2B run thus :

p. 47, margin D

"Dete.rminat;on of the net value of assets of busit,~ss as a 1vhole .

p. 47, margin F

2A. Where the Wealth tax Officer determines under clause (a) of"sub section (2) of section 7 the net value of the assets of the business as a whole having regard to the balance. sheet of such busii\ess, he shall make the adjustments specitied in rules 2B, 2C, 29, 2E, 2F and ·2G:: "Adjustfflents ;n the value of an asse{disclo.ve,1 in the balance sheet. 2B. (!) The va~ue of an asset disclosed :n the Balance sheet shall be taken to be-~ (o) in the c3'e of an asset on which·· depreciation is

pp. 47–48, margin F

admissible, its written dow'n \.1lue; (b) in the nse of an. asset o·n which no depreai1tiea

p. 48, margin A

is admissible, its book valuo ; CJ .in ti" c1so of closing stock, its value ado'pteu for the purpJses of assessment under the lncpme tax Act, AC!, 1961, for the previous year relevant to tltt

p. 48, margin A

correspJnding assessment year.

p. 48, margin A

(2) N )'. Vithlt11li11g a.iy thing coµ.tained in sub:·rulc ( i) w'1ere the mirkct value ofan asset exceeds its written down v•lue or its book value or the value adopted f)r purposes of assessm~nt under ihe .Income tax Act, 1961, asthe case may be, by m Jre than 20 pe.r cent, the value of that asset shall', for the purp?;es of rule 2A, be talcen to be its market valuo." .

p. 48, margin A

0.1 a fair re~ding of the aforesaid provisions it will appear clear that the primary method of determining the value of assets for the purposes of the Act is the one indicated in sec. (l), inasmuclo as it provides that the value of any assets, other than cash, for , tho purposes 0f this Act shall be estimated to be its mark1't price on the valuation· date. Then comes sub-sec. (2) which pro~ides that . in the cas·e'Of a business for which accounts are maintained by the assossee. regularly.the Wealth tax Officer instead of determining •eparately the valuation of each asset held by the assessee in such buS'inesi, determine the net v,1iue of the business as a whole having regard to tbe balance sheet of such business as on the valuation date and makin& 'such adjustmei1ts t:ierein as.may be prescribed. It is true that sub-. sec. (2) commences with a non obstante clause, but even so, t!le provison itself is an enabling ·one conferring discretion on tbc ·.Wealth tax Officer to determine the.net value of the assets' of tho business_ as' a wh~le ha'ving reg'ard to its balance_ she,ts as on th• valu~iion date, instead of proceeding under sub sec. (I). In other words: It. is .optionnl for the Wealth tax Officer to- reHort to either of the methods even in the case where the net value ,,,fa business carried on by the assessee is to be determined. Thirdly, even when ho ·proceeds under sub sec. (2) he has to determine the net value of tbo business as a whol.e havin'g regard to the balance-sheet of such busine" as on the valuation dat~; the pharase "having regard tc the balanccsheet of.~uch business" as judicially interpreted means thl.l the Weal~·. tax Officer. has to. take into consider~ti<Jn or act>Ollnt the balaat.sheet' of such business for such valuation and not that such balancesheet is conclusive or. binding or.decisive of the values .of assets appearing therein. Fourthly, the said sub-section also says that the Wealthtax Officer has to "make such adjustments therein as may be prescribed" .and in this- behalf Rule 2A and 2B already quoted above indicate what adjustments the Wealth-tax Officer has to make while determining the net value of. the business as a whole. Particularly sub-rule (2) of Rule 2B clearly provides that where the market value of an asset exceeds its written down value or ·book value by more than 20 per ci:nt, the value of that asset for the purposes of Rule 2A shall be taken. to be its market value. In other words, it is clear that even where the Wealth-tax Officer has resorted to sec. 7 (2) for determining the value of assets of a business as a whqle the written down values or book values of specific assets as appearing in the balance-sheet are not sacr~sanct and when the market value exceeds the written down value or book value by more than 20 per cent, the. Wealth-tax Officer has to adopt the market value of . such assets for the purposes of this Act. This is apart from the f>osition that · the resort to sec. 7 (2) itself iS discretionary and optional,' the provision being an enabling one. •

pp. 48–49, margin D

Since in the instant case the Wealth tax Officer was of the view that the book values of specific house properties as indicated in the returns filed by·appellant No. 2 were far far below their market values, he was justified in making a referrence to the Valuation Officets under sec.- l 6A of theAct and the notices is.sued by the Valuatio_n' Officers in pursuance of such reference were also valid.

p. 49, margin D

Jn the result the" appeal fails an<\ is dismissed with. costs. N. V. K. Appeal dismi~sed,

p. 49, margin E