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October 2010

S. 55A of the Income-tax Act, 1961 — Valuation report of Departmental Valuation Officer — To determine fair market value as on 1st April, 1981 whether reference to DVO can be made — Held, No.

By Jagdish D. Shah
Jagdish T. Punjabi
Chartered Accountants
Reading Time 1 mins
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part B: unreported decisions

1 ITO v. Surendra V. Shah

ITAT ‘E’ Bench, Mumbai

Before D. Manmohan (VP) and

Pramod Kumar (AM)

ITA No. 5667/Mum./2008

Decided on : 23-7-2010

Counsel for revenue/assessee :

Naveen Gupta/Dr. Rashmi J. Zaveri

Per Pramod Kumar :

Facts :

S. 55A of the Income-tax Act, 1961 — Valuation report of Departmental Valuation Officer — To determine fair market value as on 1st April, 1981 whether reference to DVO can be made — Held, No.

The issue before the Tribunal was whether the AO can resort to Departmental Valuation Officer’s (DVO) report for ascertaining fair market value of an asset as on 1st April, 1981 and for the purpose of computing cost of acquisition u/s.55(2)(b)(i).

Held :

According to the Tribunal a reference to DVO can only be made u/s.55A. Further relying on the decision of the Mumbai Bench of Tribunal in the case of Daulai Mohta (HUF) which decision was subsequently approved by the Bombay High Court, the Tribunal upheld the order of the CIT(A) to the effect that the reference to the DVO was invalid.

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