difference in valuation b/w assessee and DVO....

This query is : Open

madhur gupta (Querist)
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13 December 2009 hello friendzzzzzz
plz help me out from this problem....
there is difference in valuation in value of building in cost incurred by assessee and valuation made by valuation officer.
now my quest is whether how much variation in terms of percentage is allowed b/w two valuations
example valuation made by assesee--rs50 lac
valua by valuation officer rs60 lac
we are of opinion that 10% variation is reasonable and justified
and there is no need of addition made by A.O

plz explain it with decided cases also,if any...
thankx

Rajeev

Rajeev (Expert)
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13 December 2009 Once the Case has been referred to the valuation officer u/s 55A the AO is bound to adopt the valuation given by the VO . the only option remains with you is to fight it out in the appeal , or explain with reasonablness to the AO regarding the difference

The onus is now on the assessee to explain the difference , if the contention is not accepted by the AO , try it in the appeal.

madhur gupta

madhur gupta (Querist)
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14 December 2009 but sir 55A is for computation of capital gain only
but here we r not computing capital gain
its just a valuation of building only
if we accept the valuation by DVO then although we will get higher depreciation but there will be case of unexplained investment also
plz what should we d????

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