2011 (10) TMI 771

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....es of the case, the CIT(A) is justified in confirming the order passed u/s 154 by the Assessing Officer on the issue of Fare Market Value of the property as on 1.4.1981 by considering the valuation report of by the District Valuation Officer (DVO). 3. The assessee has also raised an additional ground vide letter dated 18.10.2011 as under: "The Learned CIT (A) failed to appreciate that in the given facts of the case, the Assessing Officer had no power or jurisdiction to refer the valuation of the capital asset to the Department Valuation Officer without satisfying the basic condition pursuant to section 55A (1) of the Act that no such reference can be made unless he has recorded the satisfaction that the value of the asset claime....

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....on 1.4.1981. 5 After considering the rival contention and relevant material on record, we note that the original assessment was completed on 26.12.2006 whereby the long term capital gain on sale of 1/3rd shares in the residential property was computed at Rs. 25,62,833/-. The Assessing Officer allowed deduction u/s 54 for investment in the residential property by the assessee. Though, during the assessment proceedings, the Assessing Officer referred the property to the DVO for determining the FMV as on 1.4.1981 under the provisions of sec.55A; however, the DVO report was not received before completion of the assessment. Since the assessment was framed without the valuation report of the DVO; therefore, returned income was accepted by the ....

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....ng any necessity to re-work the matter or to re-appraisal the facts. Further, the DVO report is subsequent development to the completion of the assessment u/s 143(3) and therefore, considering the fresh material on the point of valuation/FMV of the property is beyond the scope of section 154. Under sec. 154 only a mistake obvious and apparent on record can be rectified and not something which can be established by a process of long drawn reasoning on the point on which there may conceivably be two opinion possible. Therefore, in the facts and circumstances of the case, the issue of valuation/FMV accepted by the Assessing Officer while passing the assessment order u/s 143(3) cannot be disturbed and re-determined under the provisions of sec. ....