Registered valuer evidence requires expert rebuttal or valuation reference before assessed land and improvement costs can be substituted.

A registered valuer's report supporting fair market value, construction cost and land-development expenditure cannot be displaced by an Assessing Officer's own estimation without reliable contrary material, expert valuation or reference to the Departmental Valuation Officer where valuation is disputed. The notes state that, in the absence of an independent valuation enquiry, the registered valuer's determinations should be adopted and consequential indexation granted for the land, construction and development costs.

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Issues: Whether the Assessing Officer could reject the registered valuer's determination of the fair market value of land as on 01.04.2001 and the cost of construction and land-development charges, without referring the valuation dispute to the Departmental Valuation Officer.

Analysis: The assessee had supported the indexed cost claimed for land, construction and development with a registered valuer's report. The Assessing Officer substituted the land rate and disallowed the construction/improvement and development costs for want of supporting bills, despite the valuation having been disputed and despite a request for valuation reference. The valuation was neither referred by the Assessing Officer to the Departmental Valuation Officer under the applicable valuation mechanism nor subjected to an independent valuation enquiry. A registered valuer's report is valid evidence and cannot be displaced by the Assessing Officer's own estimation without reliable contrary material or expert valuation.

Conclusion: The registered valuer's land rate of Rs.7,250 per sq. yard as on 01.04.2001, and the stated FY 2003-04 construction cost of Rs.91,09,820 and land-development cost of Rs.21,31,493, must be adopted with consequential indexation. The issue is decided in favour of the assessee.

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