Reference to Valuation Officer 55A

Section 91 — REFERENCE TO VALUATION OFFICER (CLOSING SECTION OF PART E)

Section 91 is the substantive equivalent of 1961 s. 55A. It empowers the Assessing Officer to refer the valuation of a capital asset (for FMV / CG-computation purposes) to a Valuation Officer (VO) — when (a) registered-valuer-claimed FMV is at variance with AO's view; OR (b) AO's view is that FMV exceeds claim by prescribed percentage / amount; OR (c) other relevant circumstances warrant. Sub-section (2) imports s. 269(3)-(8) machinery (the standard DVO / VO procedural framework). Closes Part E (Capital Gains). Part F (Other Sources) follows immediately.

STATUTORY ARCHITECTURE

Section 91 is the GENERAL VO-reference power for the Capital Gains chapter — distinct from but parallel to: s. 78(2) (DVO for SDV disputes); s. 80 (FMV when consideration unascertainable); ss. 79, 86, 90 (FMV computations). Pre-FA 2012 era: AO could refer ONLY where claimed FMV was LESS than AO's view; FA 2012 amendment broadened scope to 'at variance' (any direction) and to AO-initiated FMV-exceeds-claim references. Procedural framework imports s. 269(3)-(8) — the assessee gets opportunity of hearing, objections, AO's reasons, etc.

CASE LAW

CIT v. Smt. Smitha Premkumar Nair (Ker HC) — pre-FA 2012, s. 55A(a) reference required AO to demonstrate FMV LESS than claim; FA 2012 broadening prospective only. Sunil Kumar Agarwal v. CIT (Cal HC) — VO-reference is mandatory once assessee disputes SDV under s. 78 (mirror provision). ITAT (various) — VO valuation has BINDING force on AO unless rebutted by independent contrary evidence.

PLANNING NOTES

(i) For high-value CG transactions, pre-emptive RV-report from CG-approved registered valuer reduces AO scrutiny. (ii) For under-valued CG-claims (e.g., distressed sale), proactively invoke s. 91 VO reference at AO stage — don't wait for CIT(A). (iii) Maintain documentation supporting valuation-methodology — DCF / NAV / comparable-sales — these are the anchors for VO/CIT(A) defence. (iv) For inherited assets where FMV-as-on-1-Apr-2001 is contested, VO reference may be more economical than HC writ. (v) Post-FA 2024 indexation-LTCG-restriction: if claiming 20% indexed CG over 12.5% un-indexed, ensure FMV/SDV documentation is robust for AO challenge.

CROSS-REFERENCES

• Section 78(2) — DVO reference for SDV disputes.
• Section 80 — FMV when consideration unascertainable.
• Section 79 — FMV for unquoted shares.
• Section 90 — Cost-of-acquisition definitions (FMV-as-on-1-Apr-2001 trigger).
• Section 269(3)-(8) — VO procedural framework.