Section 269 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 269 lets the Assessing Officer refer the value of an asset, property or investment to a Valuation Officer during assessment or reassessment. It sets out the Valuation Officer's right of entry and inspection, the notice and consent needed, the hearing the assessee must get, the report and its deadline, and how the Assessing Officer may use it. This article explains it as per the Income-tax Act, 2025 as amended by the Finance Act, 2026.
The Assessing Officer may refer any asset, property or investment to a Valuation Officer to estimate its value, including fair market value, in assessment or reassessment, whether or not he is satisfied about the accounts. Entry and inspection need the consent of the person in charge and at least two days' written notice. The assessee must be heard, the report goes to both the Assessing Officer and the assessee, and it is due within six months from the end of the month of the reference.
By section 1(3), the Act is in force from 1 April 2026, save as otherwise provided. No Finance Act, 2026 amendment is named for this section. Later amendments, rules and notifications should be checked. For valuation references and assessment disputes, see our legal dispute resolution service.
The reference: sub-sections (1) and (2)
Sub-section (1). The Assessing Officer may, for the purposes of assessment or reassessment, make a reference to a Valuation Officer to estimate the value, including the fair market value, of any asset, property or investment and submit a copy of the report to him.
Sub-section (2). He may make the reference whether or not he is satisfied about the correctness or completeness of the accounts of the assessee.
Entry and inspection: sub-section (3)
Who may enter, and what
For estimating the value, the Valuation Officer or any engineer, overseer, surveyor or assessor authorised by him may, subject to any rules made and at such reasonable times as may be prescribed:
- (i) enter any land within the limits of the area assigned to the Valuation Officer;
- (ii) enter any land, building or other place belonging to or occupied by a person in connection with whose assessment a reference has been made; or
- (iii) inspect any asset, property or investment in respect of which a reference has been made.
Facilities: clause (b)
They may require any person in charge of, or in occupation or possession of, the land, building, place or asset, property or investment to afford the necessary facility to (i) survey or inspect it, (ii) estimate its value, or (iii) inspect any books of account, document or record relevant for the valuation and gather other particulars.
Consent and notice: clause (c)
The Valuation Officer, engineer, overseer, surveyor or assessor shall enter a place under clause (a)(ii), or inspect an asset under clause (a)(iii), with the consent of the person in charge or in occupation or possession, after giving that person at least two days' notice in writing of his intention.
Refusal: clause (d)
If a person required to afford a facility refuses or evades, the Valuation Officer has all the powers vested in a court under the Code of Civil Procedure, 1908 when trying a suit in respect of (i) discovery and inspection, (ii) enforcing attendance of any person, including any officer of a banking company, and examining him on oath, (iii) compelling the production of books of account and other documents, and (iv) issuing commissions. The Code is another law; the reader should check it. The same four powers are given to authorities in section 246(1); see our post on section 246, summons and civil court powers.
The times of entry and the rules are left to the Income-tax Rules, 2026; see our rule-wise guides.
The estimate and the report: sub-sections (4) to (7)
| Sub-section | What it says |
|---|---|
| (4) | The Valuation Officer shall estimate the value after taking into account such evidence as the assessee may produce and any other evidence in his possession gathered, after giving the assessee an opportunity of being heard |
| (5) | The Valuation Officer may estimate the value on his own judgment if the assessee does not co-operate or comply with his directions. The Act uses a different heading for the corresponding assessment power in section 271 |
| (6) | He shall send the report of the estimate under sub-section (4) or (5) to both the Assessing Officer and the assessee |
| (7) | To rectify any mistake apparent from the record, the Valuation Officer may amend any report made by him, as per section 287 |
Section 287 is explained in our post on section 287, rectification of mistake.
Use of the report and deadline: sub-sections (8) and (9)
- (8) On receipt of the report, and after giving the assessee an opportunity of being heard, the Assessing Officer may take the report into account in making the assessment or reassessment.
- (9) The Valuation Officer shall send the report within six months from the end of the month in which the reference is made under sub-section (1).
Appointments: sub-section (10)
The Central Government may appoint as many Valuation Officers as necessary. Subject to rules and orders regulating conditions of service, a Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner may appoint as many engineers, overseers, surveyors and assessors as necessary to assist the Valuation Officers.
For the way assessment itself proceeds, see our post on section 270, processing, intimation and assessment.
The steps in order
| Step | Provision |
|---|---|
| Assessing Officer refers the asset for valuation | Sub-section (1), (2) |
| Written notice of at least two days, and consent | Sub-section (3)(c) |
| Entry, inspection, facility, books relevant to valuation | Sub-section (3)(a), (b) |
| Refusal or evasion triggers court-like powers | Sub-section (3)(d) |
| Evidence and hearing before the estimate | Sub-section (4) |
| Estimate on own judgment if no co-operation | Sub-section (5) |
| Report to both the Assessing Officer and the assessee | Sub-section (6) |
| Hearing before the report is used in assessment | Sub-section (8) |
| Report due within six months from the end of the month of reference | Sub-section (9) |
A worked example
Names, dates and places are assumed.
The Assessing Officer is assessing Mr. Gopal Iyer, who bought a plot, and refers the plot to a Valuation Officer on 18 August.
- Reference (sub-section (1)): valid whether or not the accounts are accepted as correct and complete (sub-section (2)).
- Entry (sub-section (3)(c)): the surveyor authorised by the Valuation Officer gives Mr. Iyer written notice at least two days before the visit, and enters with his consent.
- If Mr. Iyer refuses (sub-section (3)(d)): the Valuation Officer has the court-like powers listed.
- Hearing (sub-section (4)): the Valuation Officer takes Mr. Iyer's evidence into account after hearing him.
- Deadline (sub-section (9)): six months counted from the end of August (31 August) runs to the end of February of the following year, so the report is due by then.
- Use (sub-section (8)): after hearing Mr. Iyer again, the Assessing Officer may take the report into account in the assessment.
Need help with a valuation reference?
A valuation report can move the assessed figure, so the hearings in sub-sections (4) and (8) are the points to use. Our team can help you prepare the evidence and the response through our legal dispute resolution service.
Key takeaways
- The Assessing Officer may refer any asset, property or investment to a Valuation Officer, whether or not he accepts the accounts.
- Entry and inspection require consent and at least two days' written notice.
- Refusal or evasion gives the Valuation Officer civil-court powers on four matters.
- The assessee is heard before the estimate, and again before the Assessing Officer uses the report.
- The report goes to both and is due within six months from the end of the month of reference.
Read next
- Section 273: faceless assessment
- Sections 268 and 272: inquiry before assessment and directions of the Joint Commissioner
- Section 287: rectification of mistake
- Chapter XVI: procedure for assessment
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.