Reference to Valuation Officer.

With a view to ascertaining the fair market value of a capital asset for the purposes of this Chapter, the 7[Assessing Officer] may refer the valuation of capital asset to a Valuation Officer—

1. (a) in a case where the value of the asset as claimed by the assessee is in accordance with the estimate made by a registered valuer, if the 7[Assessing Officer] is of opinion that the value so claimed 8[is at variance with its fair market value]; 4. Clause (iv) omitted by Act 13 of 1966, s. 14 (w.e.f 1-4-1967).
2. (b) in any other case, if the 1[Assessing Officer] is of opinion—
   • (i) that the fair market value of the asset exceeds the value of the asset as claimed by the assessee by more than such percentage of the value of the asset as so claimed or by more than such amountas may be prescribed in this behalf; or
   • (ii) that having regard to the nature of the asset and other relevant circumstances, it is necessary so to do, and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clauses (ha) and (i) of sub-section (1) and sub-sections (3A) and (4) of section 23, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957), shall with the necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the 1[Assessing Officer] under sub-section (1) of section 16A of that Act. Explanation.—In this section, “Valuation Officer” has the same meaning, as in clause (r) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).]

¹ Ins. by Act 32 of 2003, s. 31 (w.e.f. 1-4-2004).

² Subs. by Act 7 of 2017, s. 28, for “1st day of April, 1981” (w.e.f. 1-4-2018). Earlier “1st day of April, 1974” was substituted by Act 23 of 1986, s. 13, for “1st day of January, 1964” (w.e.f. 1-4-1987) and later “1981” was substituted by Act 18 of 1992, s. 34, for “1974” (w.e.f. 1-4-1993).

³ Subs. by Act 20 of 1967, s. 21, for “section 49” (w.e.f. 1-4-1967).

⁵ Ins. by Act 5 of 1964, s. 14 (w.e.f. 1-4-1964).

⁶ Ins. by Act 45 of 1972, s. 2 (w.e.f. 1-1-1973).

⁷ Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).

⁸ Subs. by Act 23 of 2012, s. 20, for “is less than its fair market value” (w.e.f. 1-7-2012).