Rules 174 and 175 of the Draft Income-tax Rules, 2026 lay down procedural clarity regarding inspection powers of Valuation Officers and the authority competent to issue notices under section 270(8) of the Act. Rule 174 prescribes that for the purposes of section 269(3), a Valuation Officer or any authorised engineer, overseer, surveyor, or assessor may conduct inspections on any day other than public holidays, between 6 a.m. and 6 p.m. The authorised officer may enter land within the assigned jurisdiction, inspect land or buildings belonging to or occupied by a person connected with an assessment where a valuation reference has been made, or examine any asset, property, or investment under such reference. The term “public holiday” includes Sundays and any other day notified as such by the Central Government in the Official Gazette. Rule 175 designates the prescribed authority for issuing notice under section 270(8), specifying that such authority must be an income-tax authority not below the rank of an Income-tax Officer and duly authorised by the Central Board of Direct Taxes for this purpose. Together, these rules formalize inspection timelines and identify competent authority levels, thereby strengthening procedural safeguards and administrative certainty in valuation and penalty-related proceedings.
Extract of Rule No. 174 And 175 of Draft Income-tax Rules, 2026
Rule 174
Day and time for inspection by Valuation Officers etc. as per section 269(3) of the Act.
(1) For the purposes of section 269(3), on any day except public holidays, at any time between 6 a.m. and 6 p.m., the Valuation Officer, or any engineer, overseer, surveyor or assessor authorised by him by order in writing in this behalf, may, –
(i) enter any land within the limits of the area assigned to the Valuation Officer; or
(ii) enter any land, building, or other place belonging to or occupied by any person in connection with whose assessment a reference has been made to the Valuation Officer; or
(iii) inspect any asset, property, or investment in respect of which a reference has been made to the Valuation Officer.
(2) The expression “public holiday” includes Sundays, and any other day declared by the Central Government, by notification in the Official Gazette, to be a public holiday.
Rule 175
Prescribed authority for issue of notice under section 270(8) of the Act.
The prescribed authority under section 270(8) shall be an income-tax authority not below the rank of an Income-tax Officer who has been authorised by the Central Board of Direct Taxes to act as income-tax authority for the purposes of section 270(8).
