ITAT Bangalore Quashes Sec 263 Revision: No Error in Valuation & No Need to Initiate Penalty

MC Ponnappa Vs PCIT (ITAT Bangalore) The Bangalore ITAT quashed the revision order passed under Section 263, holding that the assessment order was neither erroneous nor prejudicial to the interests of Revenue. On the issue of valuation of property (FMV as on 01.04.2001): The AO had examined the sale deed, valuation report of a registered valuer, and supporting documents during assessment. The PCIT’s objection that AO failed to refer the matter to DVO u/s 55A was rejected, as such reference is discretionary, not mandatory. The Tribunal noted that even as per PCIT, the difference between guid...