Rule 249: Removing and restoring names in the register of valuers
Rule 249 deals with removal of a registered valuer from the register of valuers and restoration. The Principal Chief Commissioner, Chief Commissioner, Principal Director General or Director General of Income-tax may remove a name after a reasonable opportunity of being heard. Grounds are wrong entry, misrepresentation or suppression of a material fact, conviction with a sentence of imprisonment, or professional malpractice or misconduct. The authority also reviews all valuers once in five years and may restore a removed name on sufficient cause.
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Rule 249 - Removal from register of names of valuers and restoration
(1) The Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax 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, —
(a) that his name has been entered in the register by error or on account of misrepresentation or suppression of a material fact;
(b) that he has been convicted of any offence and sentenced to a term of imprisonment or has been guilty of any malpractice or misconduct in his professional capacity which, in the opinion of the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax, renders him unfit to be kept in the register.
(2) The Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax may, on application and on sufficient cause being shown, restore to the register the name of any person removed therefrom.
(3) Without prejudice to the provisions of sub-rules (1) and (2), the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax shall, once in five 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.
(4) The Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax may himself conduct the inquiry referred to in sub-rule (1) or (3) or appoint an Inquiry Officer not below the rank of Joint Commissioner of Income-tax to conduct such inquiry, and for the purposes of such inquiry, the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax and the Inquiry Officer so appointed shall have the same powers as are vested in a court under the Bharatiya Nyaya Sanhita, 2023 (45 of 2023), 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.
Rule breakdown
Grounds for removal: Rule 249(1)
The name was entered by error, or because of misrepresentation or suppression of a material fact.
The person was convicted of an offence and sentenced to imprisonment.
The person was guilty of malpractice or misconduct in a professional capacity that, in the opinion of the authority, makes the person unfit to stay on the register.
A reasonable opportunity of being heard, and any further inquiry the authority thinks fit, come first.
Restoration: Rule 249(2)
The same authorities may, on an application and on sufficient cause being shown, restore a removed name to the register.
Five-yearly performance review: Rule 249(3)
Once in five years the authority reviews the performance of all registered valuers.
A name may be removed if, after a hearing and any further inquiry, performance is such that the name should not remain on the register.
Inquiry and powers: Rule 249(4)
The authority may conduct the inquiry personally or appoint an Inquiry Officer not below the rank of Joint Commissioner of Income-tax.
For the inquiry, the authority and the Inquiry Officer have powers for discovery and inspection, enforcing attendance and examining on oath, compelling production of books and documents, and issuing commission. The notified English text refers to the Bharatiya Nyaya Sanhita, 2023 when describing these court powers.
Key takeaways
Hearing first
No removal without a reasonable opportunity of being heard.
Five-year review
All registered valuers are reviewed once in five years.
Restoration possible
A removed valuer may apply for restoration on sufficient cause.
Practical checklist
- Keep registration particulars accurate and complete.
- Respond fully when given an opportunity of being heard.
Avoid
- Do not suppress a material fact in the registration application; it is a ground for removal.
FAQs
Who can remove a valuer from the register?
The Principal Chief Commissioner or Chief Commissioner of Income-tax, or the Principal Director General or Director General of Income-tax (Rule 249(1)).
Can a removed valuer get the name restored?
Yes. The same authority may restore the name on an application and on sufficient cause being shown (Rule 249(2)).
How often is the performance of valuers reviewed?
Once in five years (Rule 249(3)).
Who can conduct the inquiry?
The authority itself, or an Inquiry Officer it appoints who is not below the rank of Joint Commissioner of Income-tax (Rule 249(4)).
Glossary
- Register of valuers
- The register of persons registered as valuers under section 514.
- Inquiry Officer
- An officer not below the rank of Joint Commissioner of Income-tax appointed to conduct the inquiry under Rule 249(4).