With a view to ascertain the fair market value of a capital asset for the purposes of levying tax on capital gain, the Assessing Officer may refer the valuation of the capital asset to a Valuation Officer. The case will be referred to the Valuation Officer only if following conditions are fulfilled
1. 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, but if the Assessing Officer is of the opinion that the value so claimed is (a) less than its fair market value (upto 30-6-2012); or
(b) at variance with its fair market value (w.e.f. 1-7-2012);
2. In any other case, if the Assessing Officer is of opinion
(i) that the difference between declared value and fair market value of the asset exceeds a fixed percentage or a predetermined amount ; or
(ii) that having regard to the nature of the asset and other relevant circumstances, it is necessary so to do.
3. The provisions of Wealth Tax Act regarding the valuation of assets shall be applicable under this Act also.
4. In this section “Valuation Officer” has the same meaning as it has under the Wealth-tax Act, 1957.