TaxTMI 
TaxTMI 
2020 (9) TMI 1011
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....egal, unjustified and arbitrary and against the facts of the case. Relief may please be granted by deleting the said addition of Rs. 7,84,600/-. (2) In the facts and circumstances of the case and in law ld. CIT(A) has erred in confirming the action of ld. AO in making disallowance of Rs. 2,98,890/- by invoking provision of section 14A of the Income Tax Act, 1961. The action of the ld. CIT(A) is illegal, unjustified and arbitrary and against the facts of the case. Relief may please be granted by quashing the said disallowance of Rs. 2,98,890/-." 2. Regarding Ground No. 1, the ld AR submitted that during the relevant previous year, assessee company sold a piece of land situated at Sunrise City, Niwaru, Jaipur for total consideration Rs. ....
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....alue of the land, as determined by the Registered Valuation Officer, various physical and other attributes of the land were put forth, which were also submitted to the DVO. However, such factors were totally ignored by the DVO, for the purpose of valuing the land. The Ld. AO without application of mind, considered the value of the land at DLC value, as also determined by the DVO in his report. If the assessee, as in the present case, is able to put forth physical and other attributes of the land which resulted in fetching value lower than the DLC value of its sale, then ld. AO is duty bound to consider those attributes. If the ld. AO is of the view that those factors were not considered by the DVO in its report then the ld. AO can consider ....
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....f the Act. 6. We have heard the rival contentions and perused the material available on record. We find that during the course of assessment proceedings, the matter regarding determination of Fair market value of commercial plot no. CM 77, Sunrise City, Niwaru, Jaipur as on the date of sale was referred to the DVO. The DVO after considering the sale deed of the property, site plan, valuation report as furnished by the assessee and after physically inspecting the property had determined a preliminary estimate of the valuation of the property and the same was shared with the assessee vide letter dated 21.12.2016 in order for the assessee to examine the same and submit any objections, if any by 23.12.2016. In response, the assessee had chosen....
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....tted his report, the AO is duty bound to follow the said report and doesn't have any discretion in that regard. The AO cannot entertain any objections so raised by the assessee against the valuation so determined by the DVO. Therefore, we are unable to accede to the contention so advanced on behalf of the assessee that the AO is not always obligated to follow the report of DVO and has to apply his own independent mind to the facts and circumstances persistent to the sale transaction. We have also gone through the decisions relied upon by the ld A/R at the Bar and find that none of the decisions support the contention so advanced on behalf of the assessee. In the result, the ground of appeal is dismissed. 7. Regarding Ground No. 2, briefly ....