Section 142A of ITA, 1961 : Section 142A: Estimation Of Value Of Assets By Valuation Officer

Explanation using Example

Imagine Mr. Sharma, a business owner, is undergoing an income tax assessment for the financial year 2021-2022. During the assessment, the Assessing Officer (AO) notices that Mr. Sharma has recently purchased a large piece of land. However, the AO suspects that the value of this land declared by Mr. Sharma may be understated to reduce his taxable income.

Under Section 142A of the Income-tax Act, 1961, the AO decides to refer the case to a Valuation Officer (VO) to estimate the fair market value of the land. This action is taken by the AO to ensure...

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