Section 269: estimation of value of assets by Valuation Officer

When a reference can be made

The Assessing Officer may, for the purposes of assessment or reassessment, refer the matter to a Valuation Officer to estimate the value (including fair market value) of any asset, property or investment, and the Valuation Officer submits a copy of the report to the Assessing Officer.

This power can be exercised whether or not the Assessing Officer is satisfied about the correctness or completeness of the assessee's accounts.

Powers of the Valuation Officer during valuation

The Valuation Officer (or an authorised engineer, overseer, surveyor or assessor) may, at reasonable times, enter land within their assigned area or belonging to/occupied by the person under assessment, and inspect the asset, property or investment referred to them.

They may require the person in charge of the property or asset to provide facilities to survey/inspect it, estimate its value, or inspect relevant books, documents or records.

Entry to a place, or inspection of an asset, requires the consent of the person in charge, after giving at least two days' written notice of the intention to do so.

If a person refuses or evades providing the required facility, the Valuation Officer has all the powers of a Civil Court under the Code of Civil Procedure, 1908, for discovery/inspection, enforcing attendance and examining witnesses on oath, compelling production of books/documents, and issuing commissions.

How the value is estimated

The Valuation Officer estimates the value after taking into account evidence the assessee produces and any other evidence gathered, giving the assessee an opportunity of being heard.

If the assessee does not cooperate or comply with directions, the Valuation Officer may estimate the value to the best of their judgment.

Reporting timeline and use of the report

The Valuation Officer must send the report of the estimate to both the Assessing Officer and the assessee, within six months from the end of the month in which the reference was made.

The Valuation Officer may amend any report to rectify a mistake apparent from the record, as per Section 287.

On receiving the report, and after giving the assessee an opportunity of being heard, the Assessing Officer may take the report into account in making the assessment or reassessment.

Appointment of Valuation Officers and support staff

The Central Government may appoint as many Valuation Officers as necessary. A Principal Chief Commissioner/Chief Commissioner/Principal Commissioner/Commissioner may, subject to service rules, appoint engineers, overseers, surveyors and assessors to assist the Valuation Officers.

Frequently asked questions