Reference to DVO can be Made only During Pendency of Income Tax Assessment or Reassessment...

The Income Tax Appellate Tribunal (ITAT) has ruled that a reference to a DVO (Departmental Valuation Officer) can only be made during the pendency of income tax assessment or reassessment proceedings. This significant decision clarifies the timing and scope of property valuation by tax authorities. The ITAT emphasized that once assessment proceedings are complete, the power to refer a case to a DVO ceases. This ruling provides certainty to taxpayers, preventing arbitrary or belated valuation references, and ensures that the power to value property for tax purposes is exercised strictly within the legal framework and timelines.