Addition done during assessment is invalid if it is done without waiting for the DVO Report: ITAT Ahmedabad
Recently, in Rajni Arvind Birla v. ITO (ITA No. 930/Ahd/2025), the ITAT Ahmedabad held that an assessment under Section 143(3) is invalid if the AO completes it without waiting for the DVO’s valuation after a valid objection under Section 50C(2).
Key Takeaways in the case was as under:
• Simply making a DVO reference is not enough—the AO must await the report.
• Bypassing Section 50C(2) renders the assessee’s statutory right meaningless.
• The subsequent Section 154 rectification was also struck down since the DVO report wasn’t part of the original assessment record.
A clear reaffirmation of the mandatory nature of Section 50C(2) and the limits of rectification.
The copy of the order is as under:
