Rajni Arvind Birla Vs ITO (ITAT Ahmedabad)
Provisional Assessment Invalid—Tribunal Strikes Down 143(3) & 154 Orders Passed Before DVO Valuation- 50C(2) Right Violated—Rectification Using Later DVO Report Impermissible; Entire Assessment Quashed; Order Invalid as AO Finalized Assessment “Subject to Rectification”—Act Does Not Permit Provisional 143(3) Orders; Rectification Under Section 154 Cannot Rely on Later DVO Report—Fresh Material Not Part of Record; Premature Assessment Violates Assessee’s Statutory Right Under Section 50C(2)—Natural Justice Breached; AO Ignored Statutory Exclusion of Limitation Period Under Section 153—Assessment Time-Bar Reason Rejected; CIT(A) Erred in Upholding a Jurisdictionally Defective Assessment—Failure to Consider Precedents and Procedural Violations; Disallowances Sustained Without Proper Hearing Set Aside—CIT(A) Failed to Grant Opportunity; DVO Reference Made—AO Still Adopted Stamp Duty Value; Assessment Struck Down for Non-Compliance; Assessment and Rectification Both Quashed—Jurisdictional Defects Cannot Be Cured Later
Assessee sold commercial premises for ₹1,75,00,000/-. Stamp Valuation Authority adopted ₹2,23,37,669/-. Assessee invoked s.50C(2) & AO referred matter to DVO through Technical Unit. As assessment was getting time-barred, AO passed order u/s 143(3) r.w.s 144B on 22.09.2021 adopting stamp-value, expressly stating that assessment was “subject to rectification on receipt of DVO report.” DVO report dated 25.09.2024 (FMV ₹1,94,81,000) was later received, & AO passed rectification order u/s 154 on 20.11.2024 reducing LTCG.
