TMI Blog2020 (9) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... before him. We also donot find any infirmity in the action of the AO in following the report of the DVO. Once the AO has referred the matter to the DVO for his expert opinion and the latter has submitted his report, the AO is duty bound to follow the said report and doesn t have any discretion in that regard. AO cannot entertain any objections so raised by the assessee against the valuation so determined by the DVO. Therefore, we are unable to accede to the contention so advanced on behalf of the assessee that the AO is not always obligated to follow the report of DVO and has to apply his own independent mind to the facts and circumstances persistent to the sale transaction. We have also gone through the decisions relied upon by the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ef may please be granted by quashing the said disallowance of ₹ 2,98,890/-. 2. Regarding Ground No. 1, the ld AR submitted that during the relevant previous year, assessee company sold a piece of land situated at Sunrise City, Niwaru, Jaipur for total consideration ₹ 9,00,000/-. Since there were certain irregularities, the land was sold by the assessee company at ₹ 9,00,000/- whereas the DLC Value as per the prescribed rates was ₹ 16,84,600/-. The assessee company also got the land valued from the a registered valuation officer who has valued the land at ₹ 8,76,000/-. During the course of assessment proceedings, the valuation Report, obtained from the registered valuer substantiating the price at which th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forth physical and other attributes of the land which resulted in fetching value lower than the DLC value of its sale, then ld. AO is duty bound to consider those attributes. If the ld. AO is of the view that those factors were not considered by the DVO in its report then the ld. AO can consider those factors and determine the true value of the land. The Ld. AO is not always obligated to follow the report of DVO and has to apply his own independent mind to the facts and circumstances persistent to the sale transactions and in support, reliance was placed on the following decisions:- CIT v. Rameshwar Prasad Kacholia (DBITA 51/2014 dated 15.10.2015 Raj High Court) DCIT v. Bajaj Chemicals [2017] 59 ITR(T) 132 (Kolkata - Trib.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and after physically inspecting the property had determined a preliminary estimate of the valuation of the property and the same was shared with the assessee vide letter dated 21.12.2016 in order for the assessee to examine the same and submit any objections, if any by 23.12.2016. In response, the assessee had chosen not to raise any objections for reasons best known to the assessee and has not even responded to such communication sent by the DVO. Thereafter, the DVO determined the fair market value of the property at ₹ 16,84,600/- as against ₹ 9,00,000 declared by the assessee and a valuation report dated 28.12.2016 was issued and shared with the assessee and the AO. Thereafter, the AO on receipt of the valuation report issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the facts and circumstances persistent to the sale transaction. We have also gone through the decisions relied upon by the ld A/R at the Bar and find that none of the decisions support the contention so advanced on behalf of the assessee. In the result, the ground of appeal is dismissed. 7. Regarding Ground No. 2, briefly stated the facts of the case are that the AO, during the course of assessment proceedings, on noticing the facts that assessee company has investment, amounting to ₹ 2,77,63,530/- in various companies, made disallowance of ₹ 2,98,890/- u/s 14A r/w rule 8D, and which has been confirmed by the ld CIT(A). 8. During the course of hearing, the ld. AR submitted that assessee company earned exempt income of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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