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| The Tax Publishers2019 TaxPub(DT) 0449 (Del-Trib) : (2019) 175 ITD 0032 : (2019) 200 TTJ 0098 INCOME TAX ACT, 1961
Section 55A
As AO was satisfied with the valuation of property as done by registered valuer, therefore, he did not make reference to DVO and, therefore, assessment order was not erroneous and prejudicial because making reference to DVO was discretionery and not mandatory.
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Capital gains - Reference to DVO - Whether mandatory in case AO being satisfied with registered valuer's report -
Assessee declared long-term capital gain on transfer of land. CIT held assessment order to be erroneous and prejudicial under section 263A on the ground that AO merely relied on the report of registered valuer and did not refer valuation of property to DVO.Held: It is well settled that section 55A provides that AO may refer the matter to DVO for valuation of the property. The use of word 'may' makes it discretionary so it is not mandatory. It appeared that, AO in the instant case was satisfied with the valuation report of Registered Valuer (approved by the Govt.) as furnished by assessee and therefore, he did not refer the matter to DVO. Thus, AO had taken one of the possible view and therefore, it could not be said that assessment order was erroneous or prejudicial.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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