Tribunal confirms property valuation at Rs. 53/sq.m based on DVO report for Assessment Year 2014-15

The Tribunal upheld the decision of the CIT(A) to accept the valuation of the property at Rs. 53 per sq. meter based on the DVO report, dismissing the appeal for the Assessment Year 2014-15. The dispute between the parties regarding the valuation was considered, with the Tribunal finding the DVO's valuation reasonable compared to the registered valuer's report valuing the property at Rs. 60 per sq. meter.

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Issues:
1. Acceptance of registered valuer report under Section 55A
2. Acceptance of DVO report without justification

Analysis:

Issue 1: Acceptance of registered valuer report under Section 55A
The appeal pertains to the Assessment Year 2014-15 and challenges the order of the Learned Commissioner of Income Tax (Appeals) regarding the valuation of property. The assessee claimed a cost of acquisition based on a registered valuer's report at Rs. 60 per sq. meter. However, the assessing officer considered a fair market value (FMV) of Rs. 10 per sq. meter as on 01.04.1981, leading to a higher indexed cost of acquisition. The Valuation Officer was tasked to determine the value, but the report was not received. Subsequently, the assessing officer accepted a DVO report valuing the property at Rs. 53 per sq. meter. The CIT(A) directed the AO to adopt the FMV as per the DVO report. The assessee contended that the registered valuer's report should be accepted, citing a judgment and arguing for a valuation of Rs. 60 per sq. meter. The Tribunal noted the dispute between the parties regarding the valuation and upheld the CIT(A)'s decision to consider the DVO's valuation as reasonable, leading to the dismissal of the appeal.

Issue 2: Acceptance of DVO report without justification
The assessing officer initially relied on a fair market value of Rs. 10 per sq. meter, which was later revised to Rs. 53 per sq. meter based on the DVO report. The CIT(A) directed the AO to adopt the FMV as per the DVO report. The assessee argued for the acceptance of the registered valuer's report valuing the property at Rs. 60 per sq. meter. The Revenue supported the DVO's valuation. The Tribunal considered both arguments and found the DVO's valuation reasonable, leading to the dismissal of the appeal. The decision was based on the similarity between the valuations and the lack of significant difference justifying a change in valuation.

In conclusion, the Tribunal upheld the CIT(A)'s decision to accept the DVO's valuation of the property at Rs. 53 per sq. meter, dismissing the appeal filed by the assessee for the Assessment Year 2014-15.

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