UNDER WHICH CIRCUMSTANCES, A REGISTERED VALUER OF 34 AB OF WEALTH TAX ACT WILL BE REMOVED FROM THE REGISTER MAINTAINED BY THE INCOME TAX DEPARTMENT? ; OPINION BY BK SIR

KNOWLEDGE BANK FROM B KANAGA SABAPATHY 

LET KNOWLEDGE SPREAD

Message from B. K. sir 08.03.2023

Question :

A panel valuer for his wrong valuation will be depanelled by the concerned bank. Under which circumstance, a registered valuer of 34 AB of Wealth Tax Act will be removed from the register maintained by the Income Tax department?

Opinion :

1. For the wrong valuation done by the panel valuer, the bank is unable to recover the loan which was given to the borrower. In such case, the bank depanels its valuer.

2. For the wrong valuation done by the registered valuer, the Income tax department is denied to receive the legitimate revenue from the assessee.

2.1. If the registered valuer has done a wrong valuation because of which the department looses revenue, the department may cancel the registration as per section 34 AD of Wealth Tax Act.

2.2. The Act says :

Section 34AD in THE WEALTH-TAX ACT, 1957

557 [ 34AD Removal from register of names of valuers and restoration .?

(1) The 558 [Chief Commissioner or Director-General] may remove the name of any person from the register of valuers where 559 [he is satisfied] after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as 560 [he thinks fit] to make;

(i) that his name has been entered in the register by error or on account of misrepresentation or suppression of a material fact;

(ii) that he has been convicted of any offence and sentenced to a term of imprisonment or has been guilty of misconduct in his professional capacity which, in the opinion of the 561 [Chief Commissioner or Director-General], renders him unfit to be kept in the register.

(2) The 562 [Chief Commissioner or Director-General] may, on application and on sufficient cause being shown, restore to the register the name of any person removed therefrom.]

563 [(3) Without prejudice to the provisions of sub-sections (1) and (2), the Chief Commissioner or Director-General shall, once in three years, review the performance of all the registered valuers and may remove the name of any person from the register of valuers where he is satisfied, after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as he thinks fit to make, that his performance is such that his name should not remain on the register of valuers.]

563 [(4) The Chief Commissioner or Director-General may himself conduct the inquiry referred to in sub-section (1) or sub-section (3) or appoint an Inquiry Officer not below the rank of a Commissioner to conduct such inquiry, and for the purposes of such inquiry, the Chief Commissioner or Director-General and the Inquiry Officer so appointed shall have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908) when trying a suit in respect of the following matters, namely:?

(a) discovery and inspection;

(b) enforcing the attendance of any person including any officer of a banking company and examining him on oath;

(c) compelling the production of books of account and other documents;

(d) issuing commission.]

With best wishes,

B. KANAGA SABAPATHY
bkvaluer@gmail.com
www.bkanagasabapathy.com

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