G.G. DANDEKAR MACHINE WORKS LTD.,,NAGPUR vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE 3, NAGPUR

This assessee’s appeal for AY 2013-14 arises against the CIT(A)-2, Nagpur’s order dated 17-12-2019 passed in case No. CIT(A)-2/56/2016- 17 involving proceedings under Section 143(3) of the Income Tax Act, 1961, in short ‘the Act’.

Learned departmental representative vehemently argued in light of the CIT(A)’s detailed discussion that the assessee had nowhere made any request regarding the issue of reference to the DVO for the purpose of valuation in order to determine the fair market value of its relevant capital asset. We find no merit in the Revenue’s arguments in light of PCIT Vs. Sunil Kumar Agrawal 372 ITR 83(Cal.) holding that such a reference u/s.50C(2) of the Act is indeed mandatory in nature even if the assessee concerned does not raise such a please before the departmental authorities. We adopt the very reasoning to restore the assessee’s instant sole substantive ground back to the Assessing Officer for his afresh appropriate adjudication in very terms. Ordered accordingly.

This assesee’s appeal is allowed for statistical purposes in above terms. Order pronounced in the open Court on 09th December, 2022.