Substitution of new section for section 142A
49. For section 142A of the Income-tax Act, the following section shall be substituted with effect from the 1st day of October, 2014, namely:––
Estimation of value of assets by Valuation Officer.
‘142A. (1) The Assessing Officer may, for the purposes of assessment or reassessment, make a reference to a Valuation Officer to estimate the value, including fair market value, of any asset, property or investment and submit a copy of report to him.
(2) The Assessing Officer may make a reference to the Valuation Officer under sub-section (1) whether or not he is satisfied about the correctness or completeness of the accounts of the assessee.
(3) The Valuation Officer, on a reference made under sub-section (1), shall, for the purpose of estimating the value of the asset, property or investment, have all the powers that he has under section 38A of the Wealth-tax Act, 1957. [27 of 1957]
(4) The Valuation Officer shall, estimate the value of the asset, property or investment after taking into account such evidence as the assessee may produce and any other evidence in his possession gathered, after giving an opportunity of being heard to the assessee.
(5) The Valuation Officer may estimate the value of the asset, property or investment to the best of his judgment, if the assessee does not co-operate or comply with his directions.
(6) The Valuation Officer shall send a copy of the report of the estimate made under sub-section (4) or sub-section (5), as the case may be, to the Assessing Officer and the assessee, within a period of six months from the end of the month in which a reference is made under sub-section (1).
(7) The Assessing Officer may, on receipt of the report from the Valuation Officer, and after giving the assessee an opportunity of being heard, take into account such report in making the assessment or reassessment.
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]’.
Notes on Clauses:
Clause 49 of the Bill seeks to substitute section 142A of the Income-tax Act relating to estimate by Valuation Officer in certain cases.
Under the existing provisions contained in the said section, 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, any bullion, jewellery or fair market value of any property. 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.
It is proposed to substitute the said section 142A so as to provide that the Assessing Officer may, for the purposes of assessment or reassessment, make a reference to a Valuation Officer to estimate the value, including fair market value, of any asset, property or investment and submit a copy of report to him.
Sub-section (2) seeks to provide that the Assessing Officer may make a reference under sub-section (1) whether or not he is satisfied about the correctness or completeness of the accounts of the assessee.
Sub-section (3) seeks to provide that the Valuation Officer, on a reference made under sub-section (1), shall, for the purpose of estimating the value of the asset, property or investment, have all the powers that he has under section 38A of the Wealth-tax Act.
Sub-section (4) seeks to provide that 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.
Sub-section (5) seeks to provide that the Valuation Officer may estimate the value of the asset, property or investment to the best of his judgment, if the assessee does not co-operate or comply with his direction.
Sub-section (6) seeks to provide that the Valuation Officer shall send a copy of the report of the estimate made under sub- section (4) or sub-section (5) to the Assessing Officer and the assessee, within a period of six months from the end of the month in which a reference is made under sub-section (1).
Sub-section (7) seeks to provide that 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.
Explanation occuring after the proposed sub-section (7) seeks to provide that the “Valuation Officer” shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act.
This amendment will take effect from 1st October, 2014.
