An individual assessee filed his return of income for AY 2020-21;an immovable property in the nature of   vacant low lying agril land in a panchayat area, was purchased by the assessee at a consideration of Rs.42.00 lakhs in the FY 2019-20;the stamp duty valuation was Rs.1.37 crores. The case was selected in CASS “Limited Category”, with notice being issued u/s 143(2).The assessee participated in the assessment proceedings, offering his explanation regarding the anomaly. The assessing officer issued SCN invoking section 56(2)(x) in the hands of the assessee who  vehemently objected to the triggering of  the deeming provisions of section 56(2)(x) and preferred a reference to the DVO who was being referred to for proper ascertainment .Pending the report of the DVO, assessment was completed u/s 143(3) rws 144B taxing the entire difference amount u/s 56(2)(x) citing the time barring provisions .The DVO sent his technical  staff to the spot and thereafter determined the value  at 1.48 crores on ideal surmises and conjectures  citing comparisons based on stamp duty valuation of the comparable  and sent the valuation report to the assessee to raise  objections if any  giving a meagre less than a weeks  time to respond to and contending therein the report that he(DVO) himself was present which was never the case as the assessee was himself present at the date and time of spot inspection by the technical staff deployed by the DVO . Sir/Madam it is very pertinent to take note of the fact that assessee had not obtained an independent valuer’s report on his own, completely relying under a firm sense of belief that a proper valuation will be made by the DVO.Meanwhile the assessee will be preferring an appeal u/s 246A of the Act, the time period of which has not yet expired .

Sir/Madam my question

[A] Can the DVO’s  arbitrary report be put to challenge? if yes before which forum, though an objection will be invariably sent to the DVO formally.

Can the said facts of the arbitrary action of the DVO be incorporated in the memorandum of appeal in Form 35?

Sir/Madam, are there any clear cut Court/Tribunal verdicts  in this regard in regard to challenge of the DVO’s report?[section 55A read with section 56(2)(x)]

An answer is solicited in right earnest at the earliest.

Regards & thanks

ADV SUBRATA RAY