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2016 (8) TMI 690 - HC - Income TaxReferring the matter to the Valuation Officer under section 55A - reopening of assessment - Held that:- There was no finding of the Assessing Officer that there was variation in the valuation report given by the government approved valuer. The original assessment order was passed. Thereafter, the case was reopened and while reopening the assessment, the Assessing Officer observed that since there were discrepancies in the valuation report of the government approved valuer, the matter was referred to the Valuation Cell. Since the matter was getting time barred, on the basis of the report of Asst. Valuation Officer, the Assessing Officer determined capital gain and added the same to the total income of the assessee. However, taking into account the observations of this court in the case of Commissioner of Income-tax v. Gauranginiben S. Shodhan Indl. (supra), the subsequent ascertainment of fair market value by the Asstt. Valuation Officer will not apply in the present case since the valuation of the property as per the valuation report of the government approved valuer is on the higher side. Had the valuation of the Asst. Valuation Officer been on the lower side, the matter would have been standing on a different foot. In that view of the matter, the authority ought not to have referred the matter to the Valuation Officer by applying provisions of section 55 A of the Income-tax Act by reopening of the assessment. Thus, in view of the decision of this court in Commissioner of Income-tax v. Gauranginiben S. Shodhan Indl. (2014 (2) TMI 78 - GUJARAT HIGH COURT ) and keeping in mind the above facts, the reopening of the assessment is not permissible. Therefore, the issues are required to be answered in favour of the assessee and against the revenue.
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