Income-tax Act, 1961 · Chapter IV: Computation of Total Income · E.—Capital gains
Section 55A: Reference to Valuation Officer
The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.
With a view to ascertaining the fair market value of a capital asset for the purposes of this Chapter, the [Assessing Officer] may refer the valuation of 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 [Assessing Officer] is of opinion that the value so claimed [is at variance with its fair market value]; 8. Subs. by Act 4 of 1988, s. 2, for —Income-tax Officer‖ (w.e.f. 1-4-1988).
(b) in any other case, if the [Assessing 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 amountas 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 (ha) 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 [Assessing 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).]
Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.