Section 142A of Income Tax Act for AY 2023-24

Estimation of value of assets by Valuation Officer. Section 142A of Income Tax Act 1961 amended by the Finance Act and Income-tax Rules.

Amended and updated notes on section 142A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to estimation of value of assets by Valuation Officer.

Chapter XIV (Sections 139 to 158) of the Income Tax Act 1961 deals with the provisions related to procedure for assessment. Section 142A of IT Act 1961 provides for estimation of value of assets by Valuation Officer.

Recently, we have discussed in detail section 142 (Inquiry before assessment) of IT Act 1961. Today, we learn the provisions of section 142A of Income-tax Act 1961. The amended provision of section 142A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 142A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-142A: Estimation of value of assets by Valuation Officer

Section 142A(1) of Income Tax Act

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.

Section 142A(2) of Income Tax Act

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 142A(3) of Income Tax Act

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).

Section 142A(4) of Income Tax Act

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 142A(5) of Income Tax Act

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 142A(6) of Income Tax Act

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).

Section 142A(7) of Income Tax Act

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).


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