Estimation of value of assets by Valuation Officer
[Section-269 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 269(1) of Income Tax Act 2025
269(1) The Assessing Officer may, for the purposes of assessment or reassessment, make a reference to a Valuation Officer to estimate the value, including the fair market value, of any asset, property or investment and submit a copy of report to him.
Section 269(2) of Income Tax Act 2025
269(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.
Section 269(3) of Income Tax Act 2025
269(3)(a) For estimating the value, including the fair market value, of the asset, property, or investment, the Valuation Officer or any engineer, overseer, surveyor, or assessor authorized by him, may, subject to any rules made in this regard and at such reasonable times, as prescribed,––
- (i) enter any land within the limits of the area assigned to the Valuation Officer; or
- (ii) enter any land, building, or other place belonging to or occupied by any person in connection with whose assessment a reference has been made to the Valuation Officer; or
- (iii) inspect any asset, property, or investment in respect of which a reference has been made to the Valuation Officer.
269(3)(b) The Valuation Officer or any engineer, overseer, surveyor, or assessor, may require any person in charge of, or in occupation or possession of, such land, building, or other place or such asset, property, or investment to afford the necessary facility to:
- (i) survey or inspect such land, building, or other place or such asset, property, or investment;
- (ii) estimate its value; or
- (iii) inspect any books of account, document, or record relevant for the valuation of such asset, property, or investment and gather other particulars relating to it.
269(3)(c) No Valuation Officer, engineer, overseer, surveyor, or assessor shall enter any land, building or place referred to in clause (a)(ii), or inspect any asset, property, or investment referred to in clause (a)(iii), except with the consent of the person in charge of, or in occupation or possession of, such land, building, place, or asset, property, or investment, without providing such person at least two days’ notice in writing of their intention to do so.
269(3)(d) If a person who, under this sub-section, is required to afford any facility to the Valuation Officer or the engineer, overseer, surveyor, or assessor, either refuses or evades to afford such facility, the Valuation Officer shall have all the powers as are vested in a court under the Code of Civil Procedure, 1908, when trying a suit in respect of the following matters,—
- (i) discovery and inspection;
- (ii) enforcing the attendance of any person, including any officer of a banking company, and examining him on oath;
- (iii) compelling the production of books of account and other documents; and
- (iv) issuing commissions.
Section 269(4) of Income Tax Act 2025
269(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.
Section 269(5) of Income Tax Act 2025
269(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.
Section 269(6) of Income Tax Act 2025
269(6) The Valuation Officer shall send the report of the estimate made under sub-section (4) or (5), to the Assessing Officer and the assessee.
Section 269(7) of Income Tax Act 2025
269(7) With a view to rectifying any mistake apparent from the record, the Valuation Officer may amend any report made by him, as per section 287.
Section 269(8) of Income Tax Act 2025
269(8) 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.
Section 269(9) of Income Tax Act 2025
269(9) The Valuation officer shall send the report referred to in sub-section (6) within six months from the end of the month in which the reference is made under sub-section (1).
Section 269(10) of Income Tax Act 2025
269(10) For the purposes of this Act,––
- (a) the Central Government may appoint as many Valuation Officers, as necessary; and
- (b) subject to the rules and orders of the Central Government regulating the conditions of service of persons in public services and posts, a Principal Chief Commissioner, or a Chief Commissioner, or a Principal Commissioner or a Commissioner may appoint as many engineers, overseers, surveyors and assessors as may be necessary to assist the Valuation Officers in the performance of their functions.
FAQs on Section 269 of Income Tax Act 2025
Who can make a reference to the Valuation Officer under Section 269?
The Assessing Officer may make a reference to the Valuation Officer for estimating the value, including the fair market value, of any asset, property, or investment for the purposes of assessment or reassessment.
Is the Assessing Officer required to be dissatisfied with the accounts to make a reference to the Valuation Officer?
No, the Assessing Officer can make a reference whether or not he is satisfied about the correctness or completeness of the assessee’s accounts.
What powers does the Valuation Officer have for estimating the value of an asset?
The Valuation Officer, or any engineer, overseer, surveyor, or assessor authorized by him, may enter and inspect the property or related place, require cooperation for surveying or inspection, and access relevant documents, subject to prescribed rules and notice provisions.
Can the Valuation Officer enter any premises without notice?
No, the Valuation Officer or his assistants must provide at least two days’ written notice before entering any land, building, or asset unless consent is obtained.
What if someone refuses to cooperate with the Valuation Officer?
If cooperation is refused or evaded, the Valuation Officer has the same powers as a civil court under the Code of Civil Procedure, 1908, for discovery, inspection, enforcing attendance, examining on oath, compelling document production, and issuing commissions.
What evidence does the Valuation Officer consider when estimating value?
The Valuation Officer considers evidence provided by the assessee and other evidence in his possession and must give the assessee an opportunity to be heard.
What happens if the assessee does not cooperate with the Valuation Officer?
If the assessee does not cooperate or comply with directions, the Valuation Officer may estimate the value to the best of his judgment.
To whom is the valuation report submitted?
The report is submitted to both the Assessing Officer and the assessee.
Can the Valuation Officer rectify mistakes in the report?
Yes, the Valuation Officer may amend the report to rectify any mistake apparent from the record as per section 287.
How does the Assessing Officer use the valuation report?
The Assessing Officer may consider the report while making assessment or reassessment, after giving the assessee an opportunity of being heard.
Is there a time limit for submitting the valuation report?
Yes, the Valuation Officer must send the report within six months from the end of the month in which the reference was made.
Who appoints Valuation Officers and their assisting personnel?
The Central Government may appoint Valuation Officers. Engineers, overseers, surveyors, and assessors may be appointed by a Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner, subject to Central Government rules and orders.
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