When the Income Tax Department’s Authorised Officers find unaccounted plant and machinery during a Section 132 search — factory equipment installed and operational but not reflected in the company’s books or not matching the declared asset register — the appointed Government Approved P&M Valuer is called to assess the FMV of the discovered assets.
The certificate must address the equipment’s identification (make, model, serial number where visible); the physical condition (from the on-site inspection); the RCN from current market sources; the physical depreciation from condition assessment; and the FMV (DRC or market comparison, whichever is applicable).
The certificate format conforms to Section 34AB Category IV and is accepted by the Income Tax Department for the assessment of the undisclosed investment.