Can DVO report be basis for reassessment u/s 147?


It is routine for the assessing officer  to refer the valuation of a property to DVO during the assessment proceeding. As is the norm, in many cases the reports of District Valuation Officer ( DVO) reaches A.O after the assessment is completed. It is also very common that the valuation report shows the property valuation more than what the assessee has adopted in his return or accounts . So , the A.O merrily issues notice for reassessment u/s 148 by making teh DVO report as “reasons to believe” .

Many of these types of reassessment attempts by A.Os have been challenged by assessees in Tribunal and High Courts . The good news is that judicial authorities including  Hon’ble Supreme Court have held that reopening of assessment merely on the basis of District Valuation Officer’s report is bad is law. The A.O had to apply his mind and form his belief only on the basis of some fact. The opinion of DVO alone is not sufficient  for reopening a case. Here is a discussion of such case laws :

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