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2016 (10) TMI 407 - HC - Income TaxReference to DVO - sale consideration does not reflect the correct rate - revenue authorities with the power to obtain valuation reports - Held that:- Reference to the DVO in terms of Section 55A of the Act if strictly seen, for the purpose of valuation in the context of the capital gain may not be competent. However, post the said decision in case of Smt.Amiya Bala Paul (2003 (7) TMI 4 - SUPREME Court ) Section 142A of the Act was inserted with retrospective effect substantially nullifying its effect and vesting the competent revenue authorities with the power to obtain valuation reports in the context of issues other than of capital gains computation also. In the present form, sub-section (2) of Section 142A of the Act provides that such valuation may be summoned even when the Assessing Officer may not have questioned the accounts of the assessee. This last issue is strictly not relevant for our purpose since the Assessing Officer has painstakingly and at length demonstrated why in his prima facie opinion the declaration of sale consideration does not reflect the correct rate. In short, he seriously disputed the veracity of the petitioner’s declaration of the prices at which said 3 properties were sold. Merely because from time to time the Assessing Officer referred to wrong provision for exercising powers which he otherwise had, would not vitiate his action. Had this been a case of lack of powers, the issue would certainly rest on different parameters. However, when we find that the Assessing Officer had the powers to call for the DVO’s report, the exercise cannot be struck down for a mere reference of a wrong statutory provision as has been consistently held by the Supreme Court in series of judgments. Merely because the Assessing Officer in one of the communications referred to the sale consideration as business income would not wash away the detailed analysis and materials he referred to in various letters indicating that the sale price shown was abysmally low compared to real market price. At a stage when the assessment is not yet complete, it would simply not be possible or proper in our part to intervene and interfere in the manner in which the assessment should be made. If ultimately the assessee is aggrieved by the order of assessment, he has remedy to file appeal. When the statute provides such remedies, as held by the Supreme Court in case of Commissioner of Income-tax and Ors. V/s. Chhabil Dass Agarwal, reported in [2013 (8) TMI 458 - SUPREME COURT ], interference at this stage would not be proper. The Assessing Officer strongly disputes the correctness of the sale considerations reflected in the sale deeds. The assessment is yet to be made. The Assessing Officer must be allowed free hand, be allowed to complete the assessment in accordance with law.
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