TaxTMI 
TaxTMI 
2014 (5) TMI 1142
X X X X Extracts X X X X
X X X X Extracts X X X X
....uld be accepted and not the valuation given by the DVO wherein reference in an identical case, one among the 63 vendors, was made to the DVO by the Assessing Officer u/s. 55A of the Income tax Act, 1961 to determine the cost of acquisition. 2. (4). The Learned Commissioner of Income tax (Appeals) grossly erred in treating the reference to Valuation Officer u/s. 55A as invalid. On the contrary it should have upheld the reference to the DVO in view of the provisions laid down in Section 55A(b)(ii) of the Act, which clearly states the following "that in any other case if A.O. is of the opinion that having regard to the nature of the asset and other relevant circumstances it is necessary to do so." 2. The facts which are revealed from the re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gainst Rs. 2,20,704/- declared by the assessee. The assessee carried the issue before the Ld. CIT(A) and Ld. CIT(A) following the decision of the ITAT, Pune in the case of Smt. Krishnabai Tingare Vs. ITO, Pune (2006) 103 ITD 317 held that the reference to the DVO u/s. 55A for determining the fair market value of share in the land as on 01- 04-1981 was against the provisions of law. He, accordingly, allowed the claim of the assessee. Now the Revenue is in appeals before us. 4. We have heard the parties and perused the record. The Ld. Counsel argues that the issue arising in the Revenue appeal is covered in favour of the assessee by the decision of the jurisdictional High Court in the case of CIT Vs. Puja Prints (2014) 98 DTR (Bom) 177. The ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e amendment. Therefore, the law to be applied in the present case is s. 55A(a) of the Act as existing during the period relevant to the asst. yr. 2006- 07. At the relevant time, very clearly reference could be made to DVO only if the value declared by the assessee is in the opinion of AO less than its fair market value. 9. The contention of the Revenue that the reference to the DVO by the AO is sustainable in view of s. 55A(a)(ii) [55A(b)(ii)] of the Act is not acceptable. This is for the reason that s. 55A(b) of the Act very clearly states that it would apply in any other case i.e. a case not covered by s. 55A(a) of the Act. In this case, it is an undisputable position that the issue is covered by s. 55A(a) of the Act. Therefore, resort ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s per registered valuer's report. Therefore, the AO was required to form an opinion that the value so claimed is less than the fair market value. The estimated value proposed by the DVO is shown at Rs. 3,97,000, which is less than the fair market value shown by the assessee as on 1st April, 1981. Therefore, cl. (a) of s. 55A of the Act cannot be made applicable. Clause (b) of s. 55A of the Act can be invoked only in any other case, namely when the value of the asset claimed by the assessee is not supported by an estimate made by a registered valuer. In the facts of the present case, cl. (b) of s. 55A of the Act also cannot be invoked. Therefore, there is no question of having recourse to sub-cl. (ii) of cl. (b) of s. 55A of the (Act. ....