Section 91

Section 91: reference to Valuation Officer

Section 91 gives the Assessing Officer the power to refer the valuation of a capital asset to a Valuation Officer, for the purpose of ascertaining its fair market value under the capital gains chapter, in specific circumstances - either when a registered valuer's estimate looks at variance with fair market value, or when the claimed value differs substantially from the Assessing Officer's own view of fair market value.

This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.

When a reference can be made

The Assessing Officer may refer the valuation of a capital asset to a Valuation Officer, for the purposes of this Chapter, in two situations: first, where the value claimed by the assessee is based on a registered valuer's estimate but the Assessing Officer believes that value is at variance with the fair market value; and second, in any other case, if the Assessing Officer is of the opinion that the fair market value exceeds the value claimed by the assessee by more than a prescribed percentage or amount, or that it is otherwise necessary to make a reference having regard to the nature of the asset and other relevant circumstances.

Procedure for the reference

The provisions of Section 269(3) to (8) apply, with necessary modifications, to a reference made under this section - meaning the procedural rules that govern valuation references elsewhere in the Act (such as timelines, the Valuation Officer's powers, and how the valuation report is used) apply here as well.

Frequently asked questions

Can the Assessing Officer always send a valuation to a Valuation Officer?

No. A reference can only be made where a registered valuer's estimate appears at variance with fair market value, or where the Assessing Officer believes fair market value exceeds the claimed value by more than a prescribed threshold, or where it is otherwise necessary given the nature of the asset and other relevant circumstances.