Section 55: AO cannot reject valuation report without proving lesser valuation

DCIT Vs Ajanta Tubes Ltd. (ITAT Delhi) The issue under consideration is whether the A.O. is correct in rejecting the valuation report obtained by the assessee? In the present case, assessee had sold its land and building. Assessee had taken the cost of acquisition for land as per valuation report as at 1-4-1981 as against the book value. AO rejected the valuation report stating that it was without any basis and had taken the cost of the land as per the audited balance sheet for the purpose of arriving at the indexed cost of land. ITAT state that assessee has been given an option according to t...