Amendment of section 55A.
20. In section 55A of the Income-tax Act, in clause (a), for the words “is less than its fair market value”, the words “is at variance with its fair market value” shall be substituted with effect from the 1st day of July, 2012.
Notes on Clauses:
Clause 20 of the Bill seeks to amend section 55A of the Income- tax Act relating to reference to valuation officer.
The existing provisions contained in clause (a) of the aforesaid section 55A provide that an Assessing Officer with a view to ascertain the fair market value of a capital asset may refer the valuation of a capital asset to a Valuation Officer where, in his opinion the value of the asset as claimed by the assessee is less than its fair market value.
It is proposed to amend the aforesaid clause so as to provide that reference may be made to the Valuation Officer for ascertaining the fair market value of a capital asset in case such value is at variance with its fair market value instead of making a reference only when such value is less than its fair market value.
This amendment will take effect from 1st July, 2012.
