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TMI Blog2018 (4) TMI 1519X X X X Extracts X X X X X X X X Extracts X X X X ..... has not been done by the AO. Once the assessee makes a request for reference to DVO, it is necessary to refer the matter to DVO as per 3rd proviso to sec.56 (2) (vii) r/w sec.5OC (2). In the absence of reference to DVO, the declared value cannot be disturbed. Hence, in the interest of justice, we set aside the issue in dispute to the AO with the directions to refer the matter to the DVO for valuation and DVO should allow full opportunity of hearing to the assessee, as per law and submit the Report to the AO. Thereafter, the AO shall decide the matter in dispute afresh, after considering the Report of the DVO and give adequate opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes. - I.T.A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act. Subsequently the case of the assessee was selected for scrutiny through CASS. The first notice u/s. 143(2) of the Act dated 18.9.2015 was issued by the AO. Later on, another notice us. 142(1) alognwith questionnaire dated 30.5.2016 was issued calling for various details and information as considered necessary for scrutiny of the case. In response to various notices issued u/s. 143(2) and 142(1) of the Act, the AR of the assessee appeared and filed the details called for. After going through the details furnished and verifying the same, the assessment was completed at ₹ 3,29,62,110/- and addition of ₹ 3,04,99,400/- was made vide order dated 06.12.2016 passed u/s. 143(3) of the Act. Against the assessment order, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ested to set aside the matter to the AO with the directions to refer the matter to the DVO and DVO should allow full opportunity of hearing to the assessee, as per law and submit the fresh Report to the AO. Thereafter, the AO shall decide the matter in dispute afresh, after considering the fresh Report of the DVO and give adequate opportunity of being heard to the assessee, as per law. 4. On the contrary, Ld. DR relied upon the orders of the authorities below and stated that mere stating that the matter may be referred to the DVO for valuation of market rate of these properties cannot be accepted as the market value of these properties are clearly mentioned on sale deed and moreover the assessee has paid stamp duty on market rate only. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.O., after noting the contention of reference to DVO, held that this request cannot be accepted as the market value of the properties are clearly mentioned on sale deed and Ld. CIT (A), on the issue of reference held that it is not mandatory for the A.O. to refer the matter to DVO mandatorily, which is not sustainable in the eyes of law. Because section 50C(2) read with clause c of section 56(vii)(b) inter alia provides that where the assessee claims before any AO that the value adopted or assessed or assessable by stamp valuation authority under sub section 1 of section 50C exceeds the fair market value of the property, the AO have to refer the valuation of capital asset to the Valuation Officer, which in this case has not been done b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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