Jaswin Kaur Sethi Vs DCIT (ITAT Delhi)
ITAT Delhi: AO Cannot Ignore Registered Valuer’s Report Without DVO Reference – Jaswin Kaur Sethi vs. DCIT
Facts of the Case
- The assessee, a non-resident individual, jointly owned a residential-cum-commercial property in Diplomatic Enclave, New Delhi with her mother.
- Property sold in June 2018 for ₹25.91 crore; assessee’s 50% share ₹19.266 crore (adopted per section 50C stamp duty value).
- Cost of acquisition (01.04.2001) taken at ₹5.9873 crore based on a government-approved registered valuer’s report under section 55(2)(b).
- Capital gains of ₹19.62 lakh offered to tax.
Assessment Proceedings
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AO’s action: Rejected valuer’s report; computed FMV using interpolated Delhi circle rates from FY 2007-08 without DVO reference, resulting in addition of ₹16.87 crore.
DRP Directions
- Found AO’s interpolation improper.
- Directed AO to apply Land & Development Office (L&DO) / DDA conversion rates notified by Ministry of Urban Development.
- This reduced adjustment to ₹9.247 crore, but assessee challenged the same before ITAT.
Assessee’s Contentions
1.AO/DRP violated section 55A by not referring to DVO when disagreeing with registered valuer’s FMV.
2. L&DO rates are not FMV or circle rates; cannot be used for cost of acquisition.
3. Comparable sale deeds supporting valuer’s FMV were ignored.
4. Addition made without citing relevant section; penalty u/s 270A unjustified.
ITAT’s Findings
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