2014 (1) TMI 764 - BOMBAY HIGH COURT

Reference to DVO u/s 55A - Held that:- Section 55A(a) of the Act provides that a reference could be made to the Departmental Valuation Officer only when the value adopted by the assessee was less then the fair market value - The value adopted by the respondent assessee of the property at Rs.35.99 lakhs was much more than the fair market value of Rs.6.68 lakhs even as determined by the Departmental Valuation Officer - The invocation of Section 55A(a) of the Act is not justified.

The reference to the Departmental Valuation Officer by the Assessing Officer is unsustainable because the case of assessee is clearly covered u/s 55A(a) - This is for the reason that Section 55A(b)of the Act very clearly states that it would apply in any other case i.e. a case not covered by Section 55A(a) of the Act - The CBDT Circular dated 25 November 1972 can have no application in the face of the clear position in law. This is so as the understanding of the statutory provisions by the revenue as found in Circular issued by the CBDT is not binding upon the assessee and it is open to an assessee to contend to the contrary - Decided against Revenue.