TMI Blog2019 (5) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee as also to the DVO, and by way of a speaking order. We further direct the CIT(A) to dispose of the remanded proceedings within three months of receiving this order, and, in case the DVO does not avail the opportunity of hearing, on the basis of material on record and submissions of the assessee. - ITA No.: 2107/Ahd/17 - - - Dated:- 1-4-2019 - Mr Pramod Kumar (Vice President And Madhumita Roy (Judicial Member For The Appellant : Chitranajan Bharadia For The Respondent : S K Dev ORDER Per Pramod Kumar, VP : 1 . This is an appeal filed by the assessee and is directed against the order dated 12 th June 2017, passed by the CIT ( A ) in the matter of assessment under section 143 ( 3 ) of the Income Tax Act, 1961, for the assessment year 2013 - 14 2 . The short grievance of the assessee is that the impugned addition of ₹ 12,12,402 in the computation of the capital gains be deleted as fair market value of the property is less than the valuation, as per DVO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e DVO s report . This report, after all, cannot be treated as the last word on valuation, and there has to be a grievance redressal mechanism against incorrectness of the DVO s valuationparticularly when the DVO has not properly disposed of the objections of the assessee . 4 . Let us first take a look at the relevant legal provisions . Section 50 C, as it stood at the relevant point of time, was as follows : Special provision for full value of consideration in certain cases . 50C . ( 1 ) Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being land or building or both, is less than the value adopted or assessed or assessable by any authority of a State Government ( hereafter in this section referred to as the stamp valuation authority ) for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of section 48, be deemed to be the full value of the consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessable means the price which the stamp valuation authority would have, notwithstanding anything to the contrary contained in any other law for the time being in force, adopted or assessed, if it were referred to such authority for the purposes of the payment of stamp duty . ( 3 ) Subject to the provisions contained in sub - section ( 2 ) , where the value ascertained under sub - section ( 2 ) exceeds the value adopted or assessed or assessable by the stamp valuation authority referred to in sub - section ( 1 ) , the value so adopted or assessed or assessable by such authority shall be taken as the full value of the consideration received or accruing as a result of the transfer . 5 . It is sufficient, for our purposes, to take note of the fact that the provisions of Section 23A ( 1 )( i ) of the Wealth Tax Act, 1957, shall, with necessary modifications, apply in relation to such reference as they apply in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Tribunal may, after giving both parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, and any such orders may include an order enhancing the assessment or penalty : Provided that if the valuation of any asset is objected to, the Appellate Tribunal shall, - ( a ) in a case where such valuation has been made by a Valuation Officer under section 16A, also give such Valuation Officer an opportunity of being heard; ( b ) in any other case, on a request being made in this behalf by the 51 [ Assessing Officer ] , give an opportunity of being heard also to any Valuation Officer nominated for the purpose by the Assessing Officer 7 . What essentially follows from the above provision is that in the event of the correctness of the DVO s report is called into question in an appeal before the Commissioner ( Appeals ) , the DVO is required to be given an opportunity of hearing . While the above provision refers to valuation under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0C of the Act is a deeming provision and a deeming provision is to be strictly applied without enlarging its scope . Learned CIT ( A ) was of the view that considering the provisions of Section 50C, the value taken by the AO is correct and no interference is thus called for . The assessee is not satisfied and is in further appeal before us . He is once again challenging the correctness of the DVO s report, is pointing out, what he perceives as, glaring errors in the methodology adopted by the DVO and is submitting that the CIT ( A ) fell in error in not adjudicating upon the same on merits . 10 . In view of our analysis of the legal provisions earlier in this order, the assessee is indeed correct, even though somewhat serendipitously . that the CIT ( A ) ought to have examined the matter on merits . Of course, before doing so, the CIT ( A ) was under a statutory obligation to serve notice of hearing to the DVO and thus afford him an opportunity of he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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