Estimate of Value of Assets


Estimate of Value of Assets

Created On: | 89 Views

Income Tax
Estimate of value of assets by Valuation Officer [Section 142A]

Estimate of value of assets by Valuation Officer [Section 142A] [W.e.f. 01-10-2014]

Under the existing provisions contained in section 142A, the Assessing Officer may, for the purpose of making an. assessment or reassessment, require the Valuation Officer to make an estimate of the value of any investment referred to in section 69 or 69B or the value of any bullion, jewellery or other valuable article referred to in section 69A or 69B or fair market value of any property referred to in section 56(2). On receipt of the report of the Valuation Officer, the Assessing Officer may after giving the assessee an opportunity of being heard take into account such report for the purposes of assessment or reassessment. Section 142A does not envisage rejection of books of account as a pre-condition for reference to the Valuation Officer for estimation of the value of any investment or property. Further, section 142A does not provide for any time limit for furnishing of the report by the Valuation Officer. Accordingly, old section 142A has been substituted by new section 142A so as to provide as under:

(A) Reference by Assessing Officer to the Valuation Officer for estimate of the value including fair market value of any asset, property, or investment [Section 142A(1) and (2)]

(1) The Assessing Officer may, for the purposes of assessment or reassessment, make a  reference to the Valuation Officer to estimate the value, including fair market value, of any asset, property or investment and submit the report to him.

(2) The Assessing Officer may make a reference to the Valuation Officer whether or not he is satisfied about the correctness or completeness of the accounts of the assessee.

(B) Power of Valuation Officer and procedure to make the estimate of the value of the asset, property or investment [Section 142A(3), (4) and (5)]

(1) The Valuation Officer, on a reference being made, shall, for the purpose of estimating the value of the asset, property or investment, have all the powers of section 38A of the Wealth-tax Act, 1957.

(2) The Valuation Officer shall estimate the value of the asset, property or investment after taking into account the evidence produced by the assessee and any other evidence in his possession gathered, after giving an opportunity of being heard to the assessee.

(3) If the assessee does not co-operate or comply with the directions of the Valuation Officer, he may, estimate the value of the asset, property or investment to the best of his judgment.

(C) Time period of submitting valuation report [Section 142A(6)]

The Valuation Officer shall send a copy of the report of the estimate made by him under section 142A(4) and (5) to the Assessing Officer and the assessee within a period of six months from the end of the month in which the reference is made.

(D) Assessing Officer may take such report into account in making assessment or reassessment [Section 142A(7)]

The Assessing Officer on receipt of the report from the Valuation Officer may, after giving the assessee an opportunity of being heard, take into account such report in making the assessment or reassessment.

Consequential amendments for extension of time limit for completion of assessment and reassessment specified under section 153 and 153B: The Act has amended sections 153 and 153B

so as to provide that the time period beginning with the date on which the reference is made to the Valuation Officer and ending with the date on which his report is received by the Assessing Officer shall be excluded from the time limit provided under the aforesaid sections for completion of assessment or reassessment.

In other words, the time limit of completion of assessment and reassessment will be extended by the period taken by the Valuation Officer for submission of valuation report. BACK

 

.

take a break

Subscribe to our Newsletter for Latest News & Updates.