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2016 (5) TMI 1554 - ITAT HYDERABADCapital gain computation - adopting the value determined by the DVO - Rejecting sale value declared by the assessee. - HELD THAT:- The very fact that the Assessing Officer has called upon the assessee to raise his objections presuppose that the Assessing Officer is not bound by the DVO’s report and he has got a duty to redetermine the value, but the Assessing Officer chose to proceed as if he is bound by the DVO’s report, which speaks of itself. On the top of it, the learned Commissioner- (Appeals) was of the opinion that the ITAT. Chennai Bench has directed the Assessing Officer to adopt DVO’s report (even if it is wrong), overlooking the legal position that the DVO’s report cannot be treated as sacrosanct and it is amenable to adjustment, if the assessee is able to raise proper objections. In the instant case, the assessee has relied upon various orders of the ITAT to indicate that the value determined should be based upon a sale instance which should be proximate to the date of actual sale. The assessee has also raised an objection with regard to the increase in sale instance rate by 2% per month, but even till date, Revenue could not point out as to what is the sanctity of that method being followed by the DVO. We are of the view that the DVO completely failed in his duty to appropriately make the valuation. Even if sale instance rate is taken into consideration, the difference between the sale instance rate and the rate declared by the assessee is within the permissible limits, and therefore, in the light of the orders of the ITAT placed before us, the Assessing Officer has not made out a case for adopting the value determined by the DVO. In the circumstances, we delete the addition made by the Assessing Officer, accepting the sale value declared by the assessee.
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