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2019 (8) TMI 470 - HC - Income TaxAddition based on the value adopted by the Stamp Duty Officer in terms of Section 50C - Assessee sought a reference to the DVO only at the last minute and that the AO is justified in declining to accept the request and in proceeding to finalize the assessment - HELD THAT:- CIT(A) in the order dated 1st October, 2014 held that under Section 50 (C)(3) of the Act, the value adopted for payment of stamp duty can be adopted as sale consideration only if the fair market value determined by DVO is less than the value adopted for stamp duty purposes. In the present case since a report had not been obtained by making a reference to the DVO, the addition made by the AO was held not to be in accordance with the Act. This appears to be the consistent view taken by the ITAT in several cases, which have been referred to by the CIT (A) in the aforementioned order. The Court fails to appreciate how an AO can avoid making a reference to the DVO, when it is made more than one month earlier than the final date of completion of the assessment. It is not for the AO to presume that the valuation report would not be received in time. The mandatory language of Section 50C does not allow the AO to avoid making a reference thereunder and in surmising that the valuation report would not be received before the time limit for completion of assessment. That per se would not justify proceeding with making an addition when there was a specific request for reference of the matter to the DVO.
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