Jayant Shamji Cheda Vs DCIT (ITAT Mumbai)
DVO Valuation Without Notice Invalid: Matter Remanded for Fresh Determination
The dispute related to enhancement of short-term capital gains based on DVO valuation (₹65.29 lakh) as against actual sale consideration (₹52.50 lakh). The assessee challenged the valuation on the ground of violation of natural justice, as no notice was served before finalizing the valuation.
The ITAT observed that under Section 16A of the Wealth Tax Act, the DVO is required to issue notice and provide opportunity to the assessee to raise objections before determining value. In this case, although the DVO claimed issuance of notice, the assessee demonstrated that no such notice was actually received, and no objections could be filed.
Holding that the mandatory procedure was not followed, the Tribunal set aside the valuation and restored the matter to the AO for fresh adjudication with proper opportunity and compliance of law.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The assessee has filed the present appeal against the impugned order dated 28.11.2025, passed under section 250 of the Income Tax Act, 1961 (“the Act”) by the learned Commissioner of Income Tax (Appeals) – 50, Mumbai, [“learned CIT(A)”], for the assessment year 2010-11.
