Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 144 - HC - Income TaxReference made to DVO for determination of FMV u/s 55A(a) - Whether the Tribunal is right in law in holding that the AO ought not to have made reference to the departmental valuation officer for determination of fair market value of the proper u/s 55A(a) – Held that:- The Tribunal was rightly of the view that a reference to the Valuation Officer is to be made u/s 55A - The provision specifically provides that if the AO is of the opinion that the value disclosed by the assessee is less than the fair market value only, then he can make a reference to the DVO - the formation of opinion should have rational connection with the material brought on record - It should not be based on extraneous or irrelevant reasons – the AO before making a reference to the Valuation Officer has not brought anything on the record indicating that the assessee has disclosed lesser sale price - there is nothing on the record which can suggest to ignore the report of the registered valuer and to adopt the report of the Valuation Officer - Both these persons are technical persons and before accepting the evidence of an expert, there should be corroboration of some other material – the AO ought to have not made a reference to the DVO for determination of the fair market value of the property - the report of the DVO alone is not sufficient for estimating the capital gains – thus, the order of the Tribunal is upheld – Decided against revenue.
|