TMI Blog2014 (3) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidering the DVO's original report, no further purpose would be served by setting aside the orders - Assessing Officer's adoption of values would depend on the original values adopted by the DVO and the objections raised by the assessee, to determine the market values – thus, the order passed by the CIT(A) u/s 263 of the Act set aside – Decided in favour of Assessee. - ITA. No. 503 to 506 & 507 & 508/Hyd/2013 - - - Dated:- 28-2-2014 - Shri B. Ramakotaiah And Smt. Asha Vijayaraghavan,JJ. For the Petitioner : Mr. A. V. Raghuram For the Respondent : Mr. P. Somasekhar Reddy ORDER Per Bench These six appeals are by the assessee against the order of the Commissioner of Income Tax-II, Hyderabad dated 27.03.2013 passed under section 263 of the Income Tax Act, 1961 setting aside the assessment order passed by the A.O. under section 143(3) read with section 153A read with section 254 of the I.T. Act, 1961 dated 31.12.2010. 2. The assessee has raised four grounds of appeal in all the years which are common, out of which grounds 2 and 3 pertain to issue of consequential order having passed without obtaining the approval of Addl. JCIT and so the same order is bad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the objections filed by the assessee to the Valuation Officer vide letter dated 30.11.2010 with a request to the Superintending Engineer (Valuation), to furnish comments on or before 31.12.2010 as the appellants are to be given affidavit by that time. Since no comments were received by the A.O. and as the issue was getting time barred, A.O. himself undertook the exercise of determining the market values keeping the Valuation officer's prices and assessee's quotations submitted and determined the price thereby, quantifying the relief. In doing that, A.O. by giving opportunity to the assessee and also discussing the quotations filed by the assessee in support of market values, adopted certain values as against Valuation Officer's rates. and reduced the valuation of certain items thereby arriving at valuation from Rs.79,97,642/- to Rs.51,29,346/-. In effect AO reduced the valuation by an amount of Rs.28,68,296/-. Since Ld. CIT(A) already gave relief of 15% rebate on CPWD values and 10% rebate for self-supervision, the net reduction was worked out at Rs.21,51,222/-. This relief was proportionately worked-out in each of the assessment years on the basis of cost of constructi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the AO is erroneous and prejudicial to the interests of revenue. You are, therefore requested to show cause as to why the order U/s 143(3) r.w.s.153A r.w.s.254 dated 31.12.2010 should not be revised / set aside. For this purpose your case is posted for hearing on 04-02-2013 at 11:45 AM at Room No.811, 8th Floor, A-Block, I.T.Towers, A. C. Guards, Masab Tank, Hyderabad. You are requested to appear either in person or through your Authorized Representative. You may also produce necessary evidence on which you may rely in support of your claim. 6. In reply, assessee submitted before the CIT(A) as under : a) The order passed by the Assessing Officer for giving effect to the directions of the ITAT is not an assessment order to look into the provisions of Section 142. The market values of certain items in the valuation report of the DVO were not as per the CPWD guideline values, but they were market values which were adopted without any basis. On such an objection, the direction was given by the Hon'ble ITAT to adopt the market values. The ITAT has not directed the AO to refer to the DVO. Therefore, the Assessing Officer is empowered to complete the assessment and he nee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, assessee is in appeal before us. Ld. Counsel submitted that there is no error in the order of the A.O. and A.O. has given adequate opportunity. It was also submitted that the quotations were obtained by the assessee and were placed before the ITAT also which has directed the A.O. to determine the market value on some of the items whose prices were adopted at higher value, which were matter of contention before the ITAT in assessee's appeal. Since the reply from the Valuation Officer itself was not forthcoming by that time orders are to be passed, the A.O. has undertook exercise of evaluation of the prices and adopted the value as discussed in pages 5 and 6 of the assessment order. Since the A.O. has already expressed his opinion while passing the order, revising the order by the CIT is not correct and has relied on the principles laid down by the Hon'ble Supreme Court in the case of CIT vs. Max India Ltd. 295 ITR 282. Further, it was submitted that A.O. has given opportunity to the assessee and assessee also having accepted the orders, there is no grievance on that issue and direction of the CIT to give one more opportunity to the assessee on the copy of the DVO repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table most of the prices adopted by the Valuation Officer were same except in the case of Marble Slabs, pure white Italian, Italian Marble, Marble Slabs cladding and granite slabs. There was slight reduction in the values for the teak wood windows. Even with reference to both tubs the quotations relied by the assessee was Rs.30,000/- to Rs.32,000/- whereas, the A.O. adopted Rs.35,000/- as against Rs.50,000/- adopted by the Valuation Officer. This indicate that A.O. has consciously examined each of the items and determined the values after due examination. He expressed opinion on this issue and any opinion by the CIT would be a change of opinion. 11. Be that as it may, the CIT directs the A.O. to give one more opportunity to the assessee by furnishing copy of the DVO letter dated 06.03.2013 and determine the market value of the property as directed by the ITAT. As stated earlier the comments of DVO came much later. Had AO waited for the same orders could have barred by time. Then AO has no option than to complete the proceedings in the way he did. There is no dispute with reference to the directions of the ITAT. It was rightly observed by the Ld. CIT(A) while adjudicating the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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