Rule 173: Valuation Officer jurisdiction and asset-value bands
Rule 173 combines the Board’s territorial and asset-class directions with value bands for land, buildings and rights in them. The relevant value is the whole asset’s value, including jointly owned assets, and the rule permits specified senior officers to take certain lower-band cases.
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Rule 173 - Jurisdiction of Valuation Officers as per section 2(110) read with section 269
(1) For the purposes of section 2(110) read with section 269, — (a) Regional Valuation Officers shall exercise, within such areas as the Board may direct, general supervision over the work of District Valuation Officers, Valuation Officers and Assistant Valuation Officers; (b) District Valuation Officers, Valuation Officers and Assistant Valuation Officers shall perform the functions of a Valuation Officer in respect of such areas and in relation to such class of assets, properties or investments, as the Board may direct; and (c) subject to the provisions of sub-rules (5) and (6),where under any directions issued under sub-rule (1)(b), the functions of a Valuation Officer in relation to any class of assets, being buildings or lands or any rights in buildings or lands, in respect of any area have been assigned to a District Valuation Officer, Valuation Officer and an Assistant Valuation Officer, such functions shall be performed by the respective officer mentioned in column B of the following Table, for the assets or properties or investment with value specified in the corresponding entry in column C thereof:
Sl. No. Officer who will perform valuation Value of asset 1 District Valuation Officer More than five crore rupees 2 Valuation Officer More than one crore rupees and up to five crore rupees 3 Assistant Valuation officer Up to one crore rupees (2) The value of any asset, for the purposes of sub-rule (1)(c) shall be, where a reference is made under section 78(2), the stamp duty value of the capital asset.
(3) The value of any asset, for the purposes of sub-rule (1)(c) shall be, where a reference is made under section 91(1), the value claimed by the assessee.
(4) The value of any asset, for the purposes of sub-rule (1)(c) shall be — (a) the latest value as declared in the return of income of the assessee for any tax year; and (b) where no value is ascertainable as per the return of income of the assessee for any tax year, the functions of District Valuation Officers, Valuation Officers and Assistant Valuation Officers, as the case may be, shall be performed in accordance with the direction of District Valuation Officers.
(5) The District Valuation Officer referred to in Table [Sl. No.1] having jurisdiction in respect of the area may, if he considers it necessary or expedient so to do for the purpose of proper and efficient management of the work of valuation, himself perform such functions in relation to any asset referred to in Table [Sl. No.2].
(6) The Valuation Officer referred to in Table [Sl. No.2] having jurisdiction in respect of the area may, if he considers it necessary or expedient so to do for the purpose of proper and efficient management of the work of valuation, himself perform such functions in relation to any asset referred to in Table [Sl. No.3].
(7) For the purposes of sub-rule (1)(c), the value of the assets, properties or investments referred to therein shall be in respect of the asset as a whole, whether owned by the assessee individually or jointly.
Rule breakdown
Start with the Board’s assignment
Regional Valuation Officers supervise within the areas directed by the Board. District Valuation Officers, Valuation Officers and Assistant Valuation Officers perform functions for the areas and asset classes the Board assigns.
The value table applies in the stated setting for buildings, land and rights in them; it does not replace territorial directions or create an unrestricted choice of officer.
Apply the three value bands precisely
The District Valuation Officer band is above ₹5 crore. The Valuation Officer band is above ₹1 crore and up to ₹5 crore. The Assistant Valuation Officer band is up to ₹1 crore.
At exactly ₹5 crore, the table points to the Valuation Officer; at exactly ₹1 crore, it points to the Assistant Valuation Officer, subject to the other provisions of this rule.
Identify the correct value for the reference
For a reference under section 78(2), use the capital asset’s stamp-duty value. For a reference under section 91(1), use the value claimed by the assessee.
Sub-rule (4) also addresses the latest value declared in an income-tax return and provides for District Valuation Officer directions where no value is ascertainable from the return. Record the statutory basis of the reference before choosing the relevant measure.
Joint ownership does not divide the jurisdiction value
Sub-rule (7) requires the value of the asset as a whole, whether the assessee owns it individually or jointly.
For example, a 25% interest in an asset with a relevant whole-asset value of ₹8 crore does not turn that value into ₹2 crore for this rule’s jurisdiction bands.
Recognise the specified senior-officer exceptions
A District Valuation Officer with territorial jurisdiction may take a table-row-2 asset when necessary or expedient for proper and efficient management of valuation work. A Valuation Officer may similarly take a table-row-3 asset.
These are the specific exceptions in sub-rules (5) and (6); the text should not be expanded into a general taxpayer right to select a different officer.
Key takeaways
Territory and value both matter
Read the Board’s assignment along with the table.
Whole-asset value
Joint ownership does not reduce the relevant value to the assessee’s share.
Specified exceptions
Senior officers may take the stated lower-band work.
Practical checklist
- Retain the reference and territorial assignment.
- Identify the statutory value measure.
- Use the whole-asset value and document any applicable exception.
Avoid
- Do not split the value by ownership percentage for these bands.
- Do not treat the table as a free choice of valuation officer.
FAQs
Which officer corresponds to an asset valued at exactly ₹5 crore?
Table row 2 specifies the Valuation Officer for values above ₹1 crore and up to ₹5 crore, subject to the other provisions and directions.
Can a co-owner use only the value of their share?
No. Sub-rule (7) uses the value of the asset as a whole.
Is the same valuation measure used for every reference?
No. Sub-rules (2) and (3) identify the stamp-duty value for section 78(2) and the assessee’s claimed value for section 91(1); the remaining provisions must also be read.
Glossary
- Whole-asset value
- The value of the complete asset, property or investment, including when ownership is joint.