#District Valuation Officer

The ITAT Kolkata has ruled that income tax authorities cannot unilaterally add the difference between stamp duty valuation and purchase price under Section 56(2)(x) without first referring the matter to the District Valuation Officer. This reinforces procedural fairness in property-based income assessments and protects taxpayers from arbitrary valuations by revenue officials.

Madras High Court mandates that Assessing Officers must formally reject an assessee's books of accounts before relying on a District Valuation Officer's report for escaped income assessment. The ruling clarifies that mere presumption of escapement without procedural compliance invalidates the valuation, reinforcing natural justice in tax proceedings.