DVO Reference Mandatory for Section 56(2)(vii) Valuation Dispute

The Income Tax Appellate Tribunal (ITAT), Delhi, held that exemption under Section 54 cannot be denied merely because a property is described as "commercial" in the sale deed when substantial evidence demonstrates that significant portions of the property were actually used for residential purposes. 

The Tribunal further held that where an assessee disputes the stamp duty valuation adopted for the purposes of Section 56(2)(vii), the Assessing Officer is required to refer the matter to the Departmental Valuation Officer (DVO) instead of mechanically adopting the stamp duty value. 

Accordingly, the Tribunal allowed the assessee's claim for capital gains exemption and remanded the valuation issue for fresh determination by the DVO.