The Tax Publishers2020 TaxPub(DT) 4653 (Del-Trib)

INCOME TAX ACT, 1961

Section 55A(b)(i)

Since from a straight reading of the provisions of the Act under section 55A(b)(i), rule 111AA, orders of the ITAT, judgments of the High Courts and keeping in view the fact that the estimation made by the DVO differs only 8.92% with that of the fair market value, which is less than 15% prescribed by the provisions of the Act and less than 10% as held by the various judicial forums, addition made by AO of differential amount needs to be obliterated.

Capital gains - Reference to Valuation Officer - Estimation made by the DVO differs 8.92% with that of FMV -

AO during the course of assessment proceedings under section 153A, observed that assessee had made investment in the building in the years under consideration. Accordingly, he made reference of the matter to Departmental Valuation Officer (DVO). The report of DVO made an estimate investment difference of 8.92% between the valuation as per DVO report and as declared by the assessee of which addition was made by AO. Held: From a straight reading of the provisions of the Act under section 55A(b)(i), rule 111AA, orders of the ITAT, judgments of the High Courts and keeping in view the fact that the estimation made by the DVO differs only 8.92% with that of the fair market value, which is less than 15% prescribed by the provisions of the Act and less than 10% as held by the various judicial forums, addition made by AO needs to be obliterated.

REFERRED :

FAVOUR : In favour of assessee.

A.Y. : 2009-10



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