With ItemTemplate you need to do as following
<asp:GridView ID="GridView1" runat="server" AutoGenerateColumns="false">
<Columns>
<asp:BoundField DataField="Item" />
<asp:TemplateField>
<ItemTemplate>
<asp:Label ID="Label1" runat="server" Text='<%# Eval("Date", "{0:dd/MM/yyyy}") %>'></asp:Label>
</ItemTemplate>
</asp:TemplateField>
</Columns>
</asp:GridView>