IT Search and Unaccounted Machinery — The Same-Day Certificate
When the Income Tax Department’s Authorised Officers conduct a Section 132 search at a factory, warehouse, or business premises, they catalogue all assets — including plant and machinery.
When discovered machinery does not match the declared fixed asset register, the appointed Government Approved P&M Valuer is called to the premises to value the discovered equipment.
When Plant & Machinery Becomes Part of a Section 132 Search
When the Income Tax Department’s Authorised Officers conduct a Section 132 search at a factory, warehouse, or business premises, they catalogue all assets — including plant and machinery.
If the found machinery does not match the declared fixed asset register, the appointed Government Approved P&M Valuer is called to the premises to value the discovered equipment.
Unregistered Machinery
Machinery discovered at the premises that does not appear in the declared fixed asset register.
Lower Declared Value
Machinery declared at a value lower than its assessed market value.
Unaccounted Funds
Machinery that has been purchased with unaccounted funds.
No CBDT Threshold for Machinery
An important distinction from the IT search context for jewellery: jewellery has CBDT-prescribed thresholds below which found jewellery is not treated as undisclosed.
Plant and machinery has no equivalent CBDT threshold — all unaccounted machinery found in a search must be valued and the full value may be treated as unexplained investment under Section 69 of the Income Tax Act.
There is no equivalent threshold for a lathe, DG set, delivery truck or other plant and machinery discovered during the search.
This makes the P&M search certificate commercially more encompassing than the jewellery certificate.
From Search Premises to Valuation Certificate
A2Z Valuers is appointed by the Income Tax Department for PAN India P&M enforcement valuations. When called to a search premises, the valuation process focuses on identification, replacement cost, depreciation and certification.
Identify & Physically Assess
Each piece of found equipment is identified by make, model and serial number where visible, with estimated year from the nameplate. The equipment is photographed and its physical condition is assessed.
Establish Current Replacement Cost
Current market procurement cost for the specific equipment is established from OEM price lists or secondary market data, available from the valuer’s knowledge base.
Calculate Depreciated Replacement Cost
DRC is computed by taking the Replacement Cost New (RCN) and deducting physical depreciation based on the condition assessment to determine the FMV for each item.
Section 34AB Category IV Certificate
The Section 34AB Category IV certificate is prepared on A2Z Valuers’ letterhead, signed by Nitesh Shrivastava, and submitted to the Authorised Officer.
A Structured Path to the Search Valuation
Need a Valuation for Unaccounted Machinery?
For a Section 132 IT Search involving plant and machinery, connect with A2Z Valuers for professional P&M valuation assistance and a Section 34AB Category IV certificate.