2014 (12) TMI 144

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....sp;           "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that the Assessing Officer ought not to have made reference to the departmental valuation officer for determination of fair market value of the proper under Section 55A (a) of the Income Tax Act, 1961"? 3. The facts in brief are that the assesseerespondent herein was the owner of the property situated at plot No.9, Shakti Housing Society, Vidyanagar, Bhavnagar. It was acquired by the assessee on 01.04.1981. The value of the property at that time was taken at Rs. 3,91,000/-. The assessee sold this property on 12.10.1994 for Rs. 9,51,000/-. At the time of disposal, Tax Cle....

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....and 28.12.1995. However, in the affidavitinreply the Asessing Officer himself states to ascertain the fair market value of the property, a reference was made by this office to the Valuation Officer on 26.04.1996, since according to this office, the value declared by the assessee as on the date of execution and registration of the sale deed was lower by more than 25 per cent. The petitioner filed a return on 27.8.1996, for the assessment year 1996-97 and the fair market value as on 1.4.1981 was shown at Rs. 6,25,000/-. The capital gain was worked out at Rs. 17,43,750/- taking the sale value of the property at Rs. 17,50,000/- as per the banakhat dated 29.11.1994. In the above background of the it is humbly submitted that since the capital gai....

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....ue of a capital asset for the purposes of this Chapter, the Assessing Officer may refer the Valuation of capital asset to a Valuation Officer:         (a) in a case where the value of the asset as claimed by the assessee is in accordance with the estimate made by a registered valuer, if the Assessing Officer is of opinion that the value so claimed is less than its fair market value;     The provision specifically provides that if the Assessing Officer is of the opinion that the value disclosed by the assessee is less than the fair market value only, then he can make a reference to the DVO. Now the moot question is as to how the opinion is to be formed by the Assessing Officer. Whether ....