Estimation of Value of Assets by Valuation Officer
Introduction
The Assessing Officer (AO) may refer a case to a Valuation Officer to estimate the value or fair market value of any asset, property, or investment for assessment or reassessment. The Valuation Officer must submit the report within six months from the end of the month in which the reference was made.
When Can a Reference Be Made?
The AO may refer an asset, property, or investment for valuation irrespective of doubts about the correctness of accounts. The reference can be made under any provision, including but not limited to:
- Unexplained investments (Section 69)
- Unexplained money (Section 69A)
- Undisclosed investment in books (Section 69B)
- Unexplained expenditure (Section 69C)
- Fair market value determination underSection 56(2)
Process of Valuation
- The Valuation Officer considers evidence provided by the assessee and any other relevant material.
- The assessee is given an opportunity of being heard before any evidence is used.
- If the assessee does not cooperate, the Valuation Officer may estimate the value to the best of his judgment.
Time Limit for Valuation
- The valuation report must be submitted to the AO and the assessee within six months from the end of the month in which the reference was made.
- The AO may use the report for assessment or reassessment after granting the assessee an opportunity of being heard.
Powers of the Valuation Officer
The Valuation Officer can:
- Enter land, buildings, or premises related to the valuation.
- Inspect assets, books of accounts, and documents relevant to valuation.
- Require individuals in charge of the property to provide necessary facilities for valuation.
Prior notice of at least two days is required before entering any premises, and consent of the occupant must be obtained.
Faceless Proceedings
- Section 142Ballows valuation to be conducted under the Faceless Inquiry or Valuation Scheme, 2022.
- References to Valuation Officers are made electronically through an automated allocation system using artificial intelligence and machine learning.[Notification No 19/2022, Dated 30-03-2022]