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TMI Blog2016 (2) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... el/2012 - - - Dated:- 13-1-2016 - Sh. N. K. Saini, AM And Sh. Kuldip Singh, JM For The Assessee by : Sh. Om Prakash, Adv. For The Revenue by : Smt. Anima Barnwal, Sr. DR ORDER Per N. K. Saini, AM: This is an appeal filed by the department against the order dated 09.05.2012 of ld. CIT(A)-XXVI, Delhi. 2. The only effective ground raised in this appeal reads as under: Whether the Ld. CIT(A) was justified in holding that AO was not correct on facts and in law while initiating and completing the re-assessment proceedings u/s 147/148 of the Act purely on the basis of the DVO s report and consequently holding the reassessment proceedings initiated by the AO was invalid. 3. Facts of the case in brief are tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of CIT vs. Nilofer I. Singh 309 ITR 233, has held that section 55A of the Act has no application in the case of sale simpliciter and the fair market value in no manner can substitute the full consideration in the sale of property. Similar view was also taken in case of Gwalior Rayon Silk Mfg. Weaving i Co. Ltd. Vs V. Raghvan 150 ITR 12 (Bombay), CIT vs. Equitable Investment Co. Pvt. Ltd. 174 ITR 714 (Cal) and CIT vs. Aggarwal Bros. 189 ITR 786 (Pat). In the case of Asst. Commissioner of Income-tax vs. Tej Pratap Singh (2008) 22 SOT 156 (Del.) it was held that assessment cannot be reopened for taxing capital gains in respect of an asset on the basis of its market value as estimated by the DVO. In case of ITO vs. Bholanat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation Report of the DVO would not be conclusive, and is merely an opinion. Therefore, such an abstract estimation, cannot be taken as basis to substitute the full value of consideration of the properties for the purpose of section 148 of the Act as has been held by the Apex Court in the case of ACIT vs. Dhariya Construction Co. Civil Appeal no.9468 of 2003. 5.4 I also find it important to cite the judgment in the case of CIT vs. Sachin Hotels (P) Ltd. LexDoc Id: 392389 wherein it has been held as under: Be that as it may, having called for a report of the DVO, the Assessing Officer cannot pass a reassessment order purely on the basis of the DVO's report. This is because at the end of the day, the report of the DVO is only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions the ld. Counsel for the assessee reiterated the submissions made before the ld. CIT(A) and strongly supported the impugned order. It was further stated that the reopening was done merely on the basis of the DVO s Report and no independent finding was given by the AO for escapement of the income, therefore, the ld. CIT(A) rightly quashed the reassessment framed by the AO. The reliance was placed on the judgment of the Hon ble Supreme Court in the case of ACIT Vs Dhariya Construction Company reported at 328 ITR 515. 7. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, it is an admitted fact that the reopening was done by the AO only on the basi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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