TaxTMI 
TaxTMI 
TaxTMI 
Analysis of Registered Valuer Representation in Income Tax Proceedings : Clause 513 of the Income Tax Bill, 2025 Vs. Section 287A of the Income-tax Act, 1961
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....safeguard, particularly given the technical and specialized nature of valuation disputes within the income tax framework. The introduction of Clause 513 in the proposed Bill signals an effort to modernize, clarify, and potentially harmonize the procedural aspects of appearance by registered valuers with contemporary regulatory and professional standards. This commentary provides a comprehensive analysis of Clause 513, its objectives, operative features, and implications, followed by a detailed comparative analysis with Section 287A of the Income-tax Act, 1961. The discussion is structured to address each provision's legislative intent, scope, practical ramifications, and interpretative nuances, culminating in a critical assessment of po....
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....luding the establishment of new registration and oversight mechanisms. Detailed Analysis of Clause 513 of the Income Tax Bill, 2025 Breakdown of Key Provisions * Sub-Clause (1): Right to Representation by Registered Valuer Clause 513(1) provides that any assessee entitled or required to attend before an income-tax authority or the Appellate Tribunal in matters relating to the valuation of any asset may attend through a registered valuer. * Scope: The provision applies to all valuation matters, whether the attendance is required or merely permitted, and covers proceedings before both income-tax authorities and the Appellate Tribunal. * Nature of Representation: The use of the word "may attend through a registered valuer" provides t....
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....entralized, and possibly more stringent regime for the registration and oversight of valuers. Interpretative Considerations and Ambiguities * Scope of "Valuation of Any Asset": The phrase is broad and may encompass a wide range of assets (tangible and intangible). However, the provision does not specify whether it applies to both direct and indirect valuation issues, or to disputes over methodology versus quantum. * Nature of Proceedings Covered: The provision covers both "entitled or required" attendance, suggesting it applies to both voluntary and mandatory appearances, but does not clarify whether it extends to all stages of proceedings or only to hearings. * Exclusion for Personal Examination: The exception is clear, but the thre....
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....referencing section 514 of the new Bill, likely reflecting updated registration, qualification, and regulatory requirements. * Implication: This shift modernizes the regulatory framework and may improve the quality and accountability of valuers appearing in tax proceedings. * Reference to Examination on Oath or Affirmation * Section 287A refers to section 131 of the 1961 Act, which deals with the powers of authorities regarding discovery, production of evidence, and attendance for examination. * Clause 513 refers to section 246 of the new Bill, indicating a renumbering or restructuring of the procedural provisions. * Implication: The substance remains similar, but the cross-reference ensures that the procedural framework is intern....
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....l, especially for corporates and high-net-worth individuals with complex assets. * The modernization of the regulatory regime for valuers may increase confidence in the integrity and quality of valuation evidence. * Assessees must ensure that their valuers are registered under the new regime to avoid procedural objections. B. For Registered Valuers * The new regime may require existing valuers to update their registration or meet new qualification/experience criteria. * There may be a need for continuing professional development to comply with updated standards. C. For Tax Authorities and the Tribunal * The updated framework may necessitate training or capacity building to assess and challenge technical valuation evidence effect....