2017 (6) TMI 177 - AT - Income Tax

Assessing Officer s power to refer the matter of valuation to the DVO for the valuation of fair market value as on 01.04.1981 - Held that - This matter controversy has already came before the ITAT in the Assessee s own case for the AY.2008-09. It is noticed that it is not a matter to curtail the power of the AO but it is necessary for the AO to arrive at conclusion that the value of the property declared by the Assessee is less than the fair market value. When there is no reason to forward the matter to the DVO then forwarding the matter does not itself justifiable. The CIT(A) has passed the order on the basis of the finding of the ITAT in the Assesse s own case. We found nothing material to deviate the finding of the CIT(A) on this issue therefore in the said circumstances we are of the view that the CIT(A) has passed the order judiciously and correctly which is not required to interfere with at this appellate stage. Accordingly this issue is being decided in favour of the Assessee.

Summary

Issues involved:
1. Challenge to CIT(A)'s conclusion on the jurisdiction of Assessing Officer to refer valuation to DVO.
2. Formal issue not requiring adjudication.

Analysis:

Issue No.1:
The Revenue challenged CIT(A)'s conclusion on the Assessing Officer's jurisdiction to refer the case to DVO for valuation of fair market value as on 01.04.1981. The Revenue contended that the CIT(A) erred in holding that the AO had no jurisdiction to refer the case to the DVO, citing a precedent from the Hon'ble Delhi High Court. However, the CIT(A) relied on precedents from the appellant's own case and the ITAT, which supported the view that the AO can only refer the matter if the value declared by the assessee is less than the fair market value. The ITAT upheld the CIT(A)'s order, emphasizing that the condition of clause (a) of section 55A was not satisfied in this case. Therefore, the CIT(A) was found to have passed the order judiciously and correctly, based on precedents, and the appeal was dismissed in favor of the Assessee.

Issue No.2:
This issue was deemed formal and did not require any adjudication, hence the appeal filed by the Revenue was ordered to be dismissed.

In conclusion, the judgment upheld CIT(A)'s decision regarding the Assessing Officer's jurisdiction to refer valuation to DVO, based on established legal principles and precedents from the appellant's own case. The formal issue raised did not warrant further consideration. The appeal filed by the Revenue was dismissed accordingly.