2020 (6) TMI 289

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....dated 11.03.2011, had directed the assessing officer to adopt the DVO`s valuation or Registered Stamp Valuation whichever is less, however in the said direction, the assessee had not been given an opportunity of raising objection regarding valuation made by DVO before the assessing officer. Because of this apparent mistake, the assessee had deprived from raising objection regarding valuation made by DVO before the assessing officer and hence to be rectified. The relevant para of the order dated 11.03.2011,( wherein this Tribunal had directed the assessing officer to adopt the DVO`s valuation or Registered Stamp Valuation whichever is less), is reproduced below: "6. After hearing the rival submissions and on careful perusal of materials a....

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....ct the AO to afford the assessee an opportunity of raising objection regarding valuation made by DVO and this is the mistake crept in the order of the Tribunal dated 11.03.2011. 3. Before us, ld Counsel, Shri Ravi Tulsiyan begins by pointing out that this Tribunal had directed the Assessing Officer to compute the capital gain after receipt of DVO Valuation and to adopt the DVO valuation or valuation by registered stamp valuation authority, whichever is less. The assessee had approached the Assessing Officer when the assessing officer was passing the appeal effect order of this Tribunal. In the appeal effect proceedings, pursuant to the order of the Tribunal, the assessee had assailed the decision of DVO in his valuation of the property in ....

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....eal effect to the above noted order of the Tribunal, the AO has adopted the lesser of the two valuations, viz: DVO`s valuation or value as per registered stamp valuation, whichever is less, being in this case the valuation made by DVO. That is, in assesee`s case the AO adopted the valuation made by DVO. The assessing officer did not give opportunity to the assessee to challenge the DVO valuation and this has resulted into loss to the assessee. The ld Counsel submits before us that the valuation made by DVO can be challenged and it should be appealable both on facts as well as on law. We note that AO was under a statutory obligation to serve notice of hearing to the DVO and assessee and afford them an opportunity of hearing but the AO has f....

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....e CIT(A) but without any success. Learned CIT(A) observed that "Section 50C of the Act is a deeming provision" and "a deeming provision is to be strictly applied without enlarging its scope". Learned CIT(A) was of the view that "considering the provisions of Section 50C, the value taken by the AO is correct" and no interference is thus called for. The assessee is not satisfied and is in further appeal before us. He is once again challenging the correctness of the DVO's report, is pointing out, what he perceives as, glaring errors in the methodology adopted by the DVO and is submitting that the CIT(A) fell in error in not adjudicating upon the same on merits. 10. In view of our analysis of the legal provisions earlier in this order, th....