Appearance by registered valuer in certain matters.

513(1)

Any assessee, entitled or required to attend before any income-tax authority or the Appellate Tribunal in matters relating to the valuation of any asset, may attend through a registered valuer.

513(2)

The provisions of sub-section (1) shall not apply, where the assessee is required to attend personally for examination on oath or affirmation under section 246.

513(3)

In this section, “registered valuer” means a person registered as a valuer under section 514.

Explanation

Section Summary:

Section 513 of the new income tax law allows taxpayers (assessees) to be represented by a registered valuer in matters related to the valuation of assets before income-tax authorities or the Appellate Tribunal. However, this provision does not apply if the taxpayer is required to attend personally for examination under oath or affirmation under Section 246.

Key Changes:

1. Introduction of Registered Valuer Representation: Previously, there was no explicit provision allowing taxpayers to be represented by a registered valuer in valuation-related matters. This section formalizes this right.
2. Exception for Personal Attendance: The section clarifies that the taxpayer must attend personally if required under Section 246 (e.g., for examination under oath or affirmation).

Practical Implications:

• For Taxpayers: Taxpayers can now rely on registered valuers to represent them in valuation disputes or discussions with tax authorities, reducing the need for personal involvement in technical matters.
• For Registered Valuers: This section increases the role and importance of registered valuers in tax proceedings, as they can now act as representatives in valuation-related cases.
• For Tax Authorities: Authorities must accept representations made by registered valuers, except in cases where personal attendance is mandated.

Critical Concepts:

• Registered Valuer: A person registered under Section 514 of the income tax law, qualified to provide valuation services for assets.
• Valuation of Assets: Refers to determining the fair market value of assets (e.g., property, shares, etc.) for tax purposes.
• Section 246: Pertains to situations where the taxpayer is required to appear personally for examination under oath or affirmation.

Compliance Steps:

1. Engage a Registered Valuer: Taxpayers must ensure the valuer is registered under Section 514.
2. Document Representation: Provide necessary authorization or documentation to the tax authority to allow the valuer to represent the taxpayer.
3. Attend Personally if Required: Be prepared to attend personally if the tax authority invokes Section 246.

Examples:

• Scenario 1: A taxpayer disputes the valuation of a property assessed by the tax department. Instead of attending the hearing personally, the taxpayer appoints a registered valuer to present the case and provide evidence supporting the revised valuation.
• Scenario 2: A taxpayer is summoned under Section 246 for examination under oath regarding discrepancies in asset valuation. In this case, the taxpayer must attend personally, and the registered valuer cannot represent them.

This section simplifies the process for taxpayers by allowing expert representation in valuation matters while maintaining the authority's right to require personal attendance when necessary.