The word ‘may’ used in the sub-sec. (2) to sec. 50C do not give discretion to the A.O. to refer or not to refer the matter to the DVO

Mrs. Asha Bharat Shah Vs ITO (ITAT Mumbai)- The Ld. Counsel submitted that the DVO has determined the fair market value of the property as on 1.4.1981 at 29.62 lakhs as against the value declared by the assessee at 43.10 lakhs. It is argued that no reference can be made by the DVO for determining the lesser fair market value and this issue stands covered in favour of the assessee by the decision of the ITAT Mumbai in the case of Smt. Sarala N. Sakraney vs. ITO 46 DTR (Mum)(Trib) 208. He, therefore, pleaded that the A.O. may be directed to adopt the fair market value as per valuation made by assessee’s valuer. We have also heard the Ld. D.R.After elaborately discussing the provisions of section 55A and relying on the decision in the case of CIT vs. Daulal Mohta (HUF) 1031 of 2008 judgement dated 22nd September, 2008 and held as under:-