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TMI Blog2022 (4) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... ty - when the AO has revised fair market value of the property, as per valuation report of the DVO, then in our considered view, the issue of fair market value of the property sold by the assessee is merged with rectification order passed by the Assessing Officer u/s.154/155 and thus, when the assessee has challenged value determined by the Assessing Officer on the basis of report of the DVO, the learned CIT(A) ought to have dealt with objection filed by the assessee. In this case, the learned CIT(A), without considering objection filed by the assessee on the issue of valuation of the property has simply dismissed appeal filed by the assessee on technical reasons by holding that the issue is not emanating from order passed by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determining the fair market value in respect of two properties which are in dispute. In respect of first property the learned assessing officer erred in adopting the difference between fair market value and cost under the head short term capital gain . In respect of the second property here again the learned assessing officer erred in referring to the District Valuation Officer and the difference between fair market value and cost and improvement of the land under the head income from business . 4. The learned assessing officer did not call for any objection or sent any proposal for converting the income under the head business into capital gain. The learned assessing officer further erred in stating in the assessment order that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellate authority. Subsequently, the Assessing Officer has passed rectification order u/s.154 r.w.s. 143(3) of the Income Tax Act, 1961, and determined total income at ₹ 1,09,53,080/- by adopting fair market value of the property as determined by the DVO. 4. Aggrieved by the assessment order, the assessee preferred an appeal before learned CIT(A). Before the learned CIT(A), the assessee challenged findings of the Assessing Officer in adopting fair market value as determined by the DVO. The learned CIT(A), for the reasons stated in his appellate order dated 10.10.2019, has rejected appeal filed by the assessee on the ground that the issue raised by the assessee in the appeal filed against order passed by the Assessing Officer u/s.15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er passed by the Assessing Officer. We find that when the Assessing Officer has referred valuation of the property to the DVO, the A.O. ought to have waited for report of the DVO to determine fair market value of the property. Further, when the Assessing Officer has revised fair market value of the property, as per valuation report of the DVO, then in our considered view, the issue of fair market value of the property sold by the assessee is merged with rectification order passed by the Assessing Officer u/s.154/155 of the Income Tax Act, 1961, and thus, when the assessee has challenged value determined by the Assessing Officer on the basis of report of the DVO, the learned CIT(A) ought to have dealt with objection filed by the assessee. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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