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2022 (9) TMI 882 - AT - Income TaxCapital gain - addition u/s. 50C - AO referred the matter u/s. 50C(2) Valuation Officer who determined the valued - Assessee being 50% co-owner assessed as the sale consideration and determined the LTCG - CIT(A) holding that the DVO cannot revisit his order and the second report is not binding either of the AO or the Appellate Authority, since assessment has already been done in that case as against the principle of Audi Alteram Partem - HELD THAT:- DVO was entrusted to consider assessee’s objection on the valuation of the property. Further the DVO vide its letter admitted that preliminary report was not given to the assessee calling upon its objection during the original valuation proceedings. Therefore taking into account, the assessee’s objection second valuation report dated 28.02.2018 was submitted determining the value of the property - CIT(A) erred in holding that the DVO cannot revisit his order and the second report is not binding either of the AO or the Appellate Authority, since assessment has already been done in that case. This is against the principle of Audi Alteram Partem. It is clear find from the facts that the DVO in its first valuation report determined the value of Rs. 1,35,88,000/- without providing preliminary report to the assessee calling for his objection. When the assessee particularly raised its objection and the method of valuation, the Ld. DVO admitted the mistake and heard the objections of the assessee and then determined the value of the property vide second valuation report dated 28.02.2018. CIT(A) is legally in correct in interfering the Expert’s opinion, which cannot be determined either by the Assessing Officer or the Appellate Authority. DVO is himself admits preliminary report was not given to the assessee calling for its objection. When this mistake was being rectified by second valuation report determined by the DVO, the same cannot be rejected by the Ld. CIT(A) which is unjustified. Therefore the grounds raised by the assessee are hereby allowed and the appeal is allowed.
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