Section 2 - Insertion of new section 55A - Taxation Laws (Amendment) Act, 1972

CHAPTER II AMENDMENTS TO THE INCOME-TAX ACT, 1961 2. Insertion of new section 55A. In the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income tax Act), after section 55, the following section shall be inserted, namely:- 55A. Reference to Valuation Officer. With a view to ascertaining the fair market value of a capital asset for the purposes of this Chapter, the Income-tax Officer may refer the valuation of the capital asset to a Valuation Officer- (a) in a case where the value of the asset as claimed by the assessee is in accordance with the estimate made by a registered valuer, if the Income-tax Officer is of opinion that the value so claimed is less than its fair market value; (b) in any other case, if the Income-tax Officer is of opinion (i) that the fair market value of the asset exceeds the value of the asset as claimed by the assessee by more than such percentage of the value of the asset as so claimed 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, and where any such reference is made, the provisions of sub-sections (2), (3), (4), (5) and (6) of section 16A, clauses (hd) and (i) of sub-section (1) and sub-sections (3A) and (4) of section 23, sub-section (5) of section 24, section 34AA, section 35 and section 37 of the Wealth-tax Act, 1957 (27 of 1957) shall, with the necessary modifications, apply in relation to such reference as they apply in relation to a reference made by the Wealth Officer under sub-section (1) of section 16A of that Act. 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). .