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2017 (9) TMI 50 - HC - Income TaxReassessment u/s 147/148 - computation of capital gain - valuation report received from the DVO relied upon - fair market value of the property determination - Held that:- Even in the original assessment order, the AO noted that the re-opening of the assessment order would depend on the valuation report received from the DVO. The reference to the DVO was made by him even during the course of original assessment proceedings. The order passed by the DVO under Section 55A of the Act further reveals that the Assessee had a full opportunity of pointing out to the DVO why the value proposed by him should not be finalized. For the reasons best known to her, the Assessee chose not to participate in the proceedings before the DVO. Consequently, it is too late in the day for the Assessee to question the determination by the DVO of the fair market value of the property in question. In the circumstances of the present case where the Assessee was fully conscious of a reference having been made to the DVO and chose not to participate in the resultant proceedings, the reopening of the assessment on that basis cannot be said to be erroneous. The AO was conscious that the valuation report would necessitate the re-opening of the assessment if it was found that what was declared by the Assessee as the value of the property was different than what emerged in the report of the DVO. The Assessee too was aware of this consequence. As is evident the value of the property in question as disclosed by the Assessee was far too less when compared to the fair market value as of that date as has been determined by the DVO. On merits, therefore, the re-opening of the assessment was entirely justified. Consequently, the Court sees no error having been committed either by the CIT (A) or the ITAT in confirming the addition. - Decided against assessee.
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