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2014 (6) TMI 283 - AT - Income TaxLTCG Lower Cost of acquisition adopted as on 1.4.1981 Validity of reference made to DVO u/s 55A of the Act Held that:- Following CIT V/s Puja Prints [2014 (1) TMI 764 - BOMBAY HIGH COURT] - Section 55A(a) of the Act very clearly at the relevant time provided that a reference could be made to the DVO only when the value adopted by the assessee was less than the fair market value - the value adopted by the 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 DVO the AO referred the issue of valuation to the DVO only because in his view the valuation of the property as on 1981 as made by the assessee was higher than the fair market value - the invocation of Section 55A(a) of the Act is not justified. The Parliament has not given retrospective effect to the amendment - Section 55A(a) of the Act as existing during the period relevant to the AY 2006-07 - reference could be made to DVO only if the value declared by the assessee is in the opinion of AO less than its fair market value thus, the order of CIT(A) is upheld in deleting the addition made by the AO on account of LTCG relying on the report of DVO by holding that the reference made by AO to the DVO u/s 55A of the Act itself was bad in law Decided against Revenue.
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