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2016 (7) TMI 684 - ITAT CHENNAIRevision u/s 263 - CIT(A) directing the AO to consider the fair market value of the properties as on 1.4.1981 at ₹ 40 per sq.ft. instead of ₹ 300/- as claimed by the assessee - Held that:- Assessing Officer cannot take a view either against or in favour of the assessee without making proper enquiries and without proper examination of the claim made by the assessee in the light of applicable law. In the present case, the Assessing Officer considered the FMV at ₹ 300 per sq.ft. as on 1.4.1981 as submitted by the assessee without bringing any comparable cases or referring the matter to the DVO for valuation. This itself is an error committed by the AO that aspect involves the rejection of tax, which is prejudicial to the interests of the revenue. The CIT is empowered to invoke the provisions of sec.263 of the Act, so as to rectify the errors committed or wrong decision taken by the Assessing Officer. After considering the material on record, in our opinion, it cannot be said that exercise of jurisdiction by the CIT u/s.263 of the Act, is bad in law. Accordingly, we uphold the order of the CIT to the extent that the Assessing Officer is not justified in considering the FMV as on 1.4.1981 at ₹ 300 per sq.ft.. However, the CIT cannot determine the FMV of the property, himself. In the present case, the CIT, himself fixed the FMV of the properties as on 1.4.1981 at ₹ 40 per sq.ft., which is not correct. Accordingly, we direct the AO to refer the matter both, landed properties as well as buildings to the DVO and decide the issue afresh. It is needless to say that the DVO has to consider comparable cases in the immediate vicinity of the properties, where it is located and also give an opportunity of hearing to the assessee. - Decided in favour of assessee for statistical purposes.
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