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2019 (12) TMI 687 - ITAT VISAKHAPATNAMLong term capital gains - Valuation determined by the DVO - adoption of SRO value for the purpose of capital gains - show cause notice to the assessee proposing to adopt the SRO value instead of Fair Market Value determined by the DVO for the purpose of capital gains and the assessee objected for adoption of the SRO Value due to the disadvantages in selling the property - AO rejected the objections raised by the assessee, since, the assessee did not dispute the guideline value before Stamps and Registration Authorities or in any Court of Law - HELD THAT:- Since the property in question was referred to valuation officer and the value assessed by the valuation officer is binding on the department, there is no reason to enhance the value assessed by the Valuation Officer when the Act does not permit the AO or the CIT(A) to do so. In case the CIT(A) is not convinced with the value determined by the DVO, as an extension of assessing authority, the CIT(A) ought to have referred the issue to the DVO again for reconsideration of the value. The valuation officer being expert, the CIT(A) is not allowed to tinker with the expert opinion without further reference to the DVO and in the process, the CIT(A) also has to give opportunity to the assessee to cross examine and to present his case before Departmental Valuation Officer along with the observations of the CIT(A). The entire process of examination, reexamination, reference was not conducted in the instant case. Therefore, there is no reason to not to accept the value determined by the valuation officer. Thus we are unable to sustain the order of the CIT(A) and hold that the assessing authority has no option except to accept the FMV determined by the DVO after making reference and proceed to compute capital gains by following provisions of sub section 50C(3) of the I.T.Act. Except the general remarks neither the CIT(A) nor the AO has found the specific defaults in the valuation report. Accordingly, we direct the AO to compute the capital gains adopting the value determined by the DVO in place of guideline value of Stamps and Registration Authority. The next contention raised by the assessee is to accept the sum of ₹ 4,79,00,000/- as full value of consideration. DVO has considered all the issues raised by the assessee with regard to various disadvantages and determined the fair market value as on 30.07.2009. No other evidence or material brought on record by the assessee to disturb the fair market value assessed by the DVO. Therefore, we do not find any reason to interfere with the valuation determined by the DVO and the contention of the assessee is rejected. Accordingly, appeals of the revenue are dismissed and the appeals of the assessee are partly allowed.
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