Section 43CA RW 50C: AO cannot make addition without referring Valuation to DVO

Vijay Arvind Raykar Vs ITO (ITAT Pune)

The assessee is a builder. He is in the business of construction and sale of residential/ commercial properties. The AO observed that certain residential units have been sold by the assessee at a price less than the value adopted for Stamp Duty purpose by the State Government.

During the assessment proceedings, the assessee pleaded before the AO that due to market conditions and competition, the assessee had sold at a price less than the stamp duty valuation. The assessee also pleaded that the project is situated in Gram Panchayat Area.

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