77[Reference to Valuation Officer.78
16A. (1) For the purpose of making an assessment
(including an assessment in respect of any assessment year commencing before the
date of coming into force of this section) under this Act, 79[where under the provisions of section 7 read
with the rules made under this Act, or, as the case may be, the rules in
Schedule III, the market value of any asset is to be taken into account in such
assessment,] the 80[Assessing Officer] may refer the valuation of
any asset to a Valuation Officer—
(a) in a
case where the value of the asset as returned is in accordance with the
estimate made by a registered valuer, if the 80[Assessing Officer] is of opinion that the value so returned
is less than its fair market value ;
(b) in
any other case, if the 80[Assessing Officer] is
of opinion—
81(i) that
the fair market value of the asset exceeds the value of the asset as returned
by more than such percentage of the value of the asset as returned or by more
than such amount as may be prescribed in this behalf ; or
(ii) that having regard to the nature of the asset
and other relevant circumstances, it is necessary so to do.
(2) For the purpose of estimating the value of any asset
in pursuance of a reference under sub-section (1), the Valuation Officer may
serve on the assessee a notice requiring him to produce or cause to be produced
on a date specified in the notice such accounts, records or other documents as
the Valuation Officer may require.
(3) Where the Valuation Officer is
of opinion that the value of the asset has been correctly declared in the
return made by the assessee under section 14 or section 15, he shall pass an
order in writing to that effect and send a copy of his order to the 82[Assessing Officer] and to the assessee.
(4) Where the Valuation Officer is of opinion
that the value of the asset is higher than the value declared in the return
made by the assessee under section 14 or, section 15, or where the asset is not
disclosed or the value of the asset is not declared in such return or where no
such return has been made, the Valuation Officer shall serve a notice on the
assessee intimating the value which he proposes to estimate and giving the
assessee an opportunity to state, on a date to be specified in the notice, his
objections either in person or in writing before the Valuation Officer and to
produce or cause to be produced on that date such evidence as the assessee may
rely in support of his objections.
(5) On the date specified in the notice under
sub-section (4), or as soon thereafter as may be, after hearing such evidence
as the assessee may produce and after considering such evidence as the
Valuation Officer may require on any specified points and after taking into
account all relevant material which he has gathered, the Valuation Officer
shall, by order in writing, estimate the value of the asset and send a copy of
his order to the 82[Assessing Officer] and to the assessee.
(6) On receipt of the
order under sub-section (3) or sub-section (5) from the Valuation Officer, the 82[Assessing Officer] shall, so far as the
valuation of the asset in question is concerned, proceed to complete the
assessment in conformity with the estimate of the Valuation Officer.]