| SooperKanoon Citation | sooperkanoon.com/371295 |
| Subject | Direct Taxation |
| Court | Karnataka High Court |
| Decided On | Aug-02-1974 |
| Case Number | Writ Petition No. 3580 of 1973 |
| Judge | E.S. Venkataramaiah, J. |
| Reported in | [1975]99ITR94(KAR); [1975]99ITR94(Karn); 1975(1)KarLJ120 |
| Acts | Wealth-tax Rules, 1957 - Rule 8A; Wealth Tax Act, 1957 - Sections 7(1) and 34AB |
| Appellant | C.R. Venkatesha Rao |
| Respondent | Central Board of Direct Taxes |
| Appellant Advocate | M. Rama Jois, Adv. |
| Respondent Advocate | S.R. Rajasekhara Murthy, Adv. |
Venkataramiah, J.
1. The petitioner is an Associate Member of the Institute of Engineers (India), in the civil engineering division. He is registered as a valuer of immovable properties under the provisions of the Estate Duty Act. But his application for registration as a registered valuer under the Wealth-tax Act was rejected by the Central Board of Direct Taxes on the ground that he did not possess the requisite qualification.
2. Aggrieved by the said decision of the Central Board of Direct Taxes, the petitioner has filed this writ petition.
3. Section 34AB of the Wealth-tax Act provides for the registration of valuers. Sub-section (2) of section 34AB states that any person who possesses the qualification prescribed in this behalf may apply to the Central Board of Direct Taxes in the prescribed form for being registered as a valuer under that section. The relevant part of rule 8A of the Wealth-tax Rules by which the qualifications of registered valuers are prescribed reads as follows :
'8A. (1) For the purposes of sub-section (2) of section 34AB, the qualifications for registration as valuers of different classes of assets shall be as specified in sub-rules (2) to (11).
(2) A valuer of immovable property (other than agricultural lands, plantations, forests, mines and quarries) shall have the following qualifications, namely :-
(i) he must either be a graduate in civil engineering, architecture or town planning of a recognised university, or possess a qualification recognised by the Union Public Service Commission as equivalent to a degree in civil engineering or architecture; and...'
4. The case of the petitioner is that he possesses a qualification recognised by the Union Public Service Commission as equivalent to a degree in civil engineering. It is not disputed that the following educational qualifications have been treated as equivalent to a degree in engineering by the Union Public Service Commission. They are :
'(a) Passing of sections A and B of the associate membership examination in civil engineering of the Institution of Engineers;
(b) A qualification exempting the person from passing sections A and B of the associate membership examination of the Institution of Engineers;
(c) A qualification recognised by the Central Government for recruitment to superior posts and services under the Central Government.'
5. The petitioner relies upon the qualifications mentioned in clause (b) above in support of his case. As can be seen from the qualifications which are treated as equivalent to the degree in civil engineering by the Union Public Service Commission, a person who has either passed sections A and B of the associate membership examination of the Institution of Engineers or possesses a qualification exempting a person from passing A and B of the associate membership of the Institution of Engineers has to be treated as a person possessing a qualification equivalent to a degree in engineering. In order to ascertain whether a person possesses a qualification exempting a person from passing A and B of the associate membership examination of the Institution of Engineers, reference has to be made to the bye-laws made by the Institution of Engineers (India). Under the said bye-law a person can become its associate member either by passing sections A and B of the institution examinations prescribed by the Council or by possessing an educational qualification recognised by the Council as exempting therefrom. (Vide bye-law No. 16). Bye-law No. 36 confers powers on the Council of the Institution of Engineers (India) to recognise such university degrees and collegiate or other diplomas or certificates as after scrutiny they may deem to prove a sufficient standard of attainment in the subjects referred to and may exempt such graduates or holders of such diplomas or certificates from passing in whole or in part the aforesaid examination appointed and directed by the Council. It is not disputed in this case that the petitioner has been elected as an associate member of the Institute of Engineers in the civil engineers division after he was exempted from passing sections A and B prescribed by the Institution of Engineers (India). It follows that the petitioner possesses a qualification exempting him from passing sections A and B of the associate membership examination of the Institute of Engineers which is treated by the Union Public Service Commission as equivalent to a degree in civil engineering. The petitioner has, therefore, established that he has one of the qualifications prescribed by rule 8A of the Wealth-tax Rules which enables him to get himself registered as a registered valuer. The Central Board of Direct Taxes was, therefore, in error in holding that the petitioner did not possess the required qualification for being registered as a valuer under the Wealth-tax Act. The order made by the Central Board of Direct Taxes is, therefore, quashed. The Central Board is directed to consider the case of the petitioner for registration as a registered valuer for the purpose of the Wealth-tax Act.
6. The petition is accordingly allowed.
7. No costs.