Aries Export Private Limited Vs ITO (ITAT Mumbai)
Mumbai ITAT: DVO Reference Mandatory When Buyer Disputes Stamp Duty Value under Section 56(2)(x)
The Mumbai ITAT held that where an assessee disputes the stamp duty value adopted for taxing a property purchase under section 56(2)(x) and specifically seeks a reference to the District Valuation Officer (DVO), the Revenue authorities cannot ignore the request and mechanically adopt the stamp duty value. In the present case, the assessee purchased an immovable property for ₹14.45 crore against a stamp duty value of ₹17.67 crore, resulting in an addition of ₹3.22 crore under section 56(2)(x). The assessee had objected to the adoption of the stamp duty value and had also furnished a Registered Valuer’s report valuing the property at around ₹14 crore, broadly matching the actual purchase consideration.
The Tribunal observed that both the Assessing Officer and the CIT(A) failed to consider the assessee’s repeated request for a DVO reference, despite the valuation report and specific objections being on record. Holding that the valuation dispute required examination by the statutory valuation authority, the Tribunal restored the matter to the Assessing Officer with a direction to refer the property to the DVO, obtain the valuation report, and thereafter complete the assessment afresh after granting the assessee an adequate opportunity of being heard.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
