Reference to DVO can be made only if AO think that value claimed in registered valuer’s report was less than FMV

Royal Calcutta Turf Club Vs. DCIT (ITAT Kolkata)

Reference by the assessing officer to the DVO under section 55A for valuation of fair market value of the property as on 1-4-1981 is not valid for the reason that the assessing officer was of the view that fair market value declared by the assessee as per Government registered valuer’s report was more than the fair market value whereas in law the assessing officer could make a reference only when he is of the opinion that the value so claimed is less than the fair market value as on 1-4-1981. Since determination of the fair market value as on 1-4-1981 was based on the report of the DVO, the same is held invalid. Consequently, estimation of the fair market value of the properly as on 1-4-1981 as made by the assessee is directed to be accepted.

FULL TEXT OF THE ITAT JUDGMENT

ITA No. 231/Kol/2013 is an appeal by the assessee while ITA No. 204/Kol/2013 is appeal by the Revenue. Both the appeals are directed against the order dt. 28-1-2011 of Commissioner (Appeals)-XXXVI, Kolkata relating, to assessment year 2008-09.

ITA No. 231/Kol/2013 (Assessee’s appeal) :–

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