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Assessment under Search and Seizure
Earlier before implementation of Finance Act 2017 it was said that “if an assessee has escaped the income for Six years he need not worry” since the assessing power had no rights to open cases beyond six years. But this fact is no longer operational since Finance Act 2017 gave the Assessing Officer the power to open the cases for Ten Assessment years. This power is given in case of search and seizure u/s 153A.
Section 153A is in respect of the assessments by assessing officer in case of search or requisition.
It says notwithstanding anything contained in section 139/147/148/149/151/153, in the case of a person where a search is initiated under section 132 the Assessing Officer shall issue notice to such person requiring him to furnish within such period, as may be specified in the notice, the return of income in respect of each Assessment Year (AY) falling within 6 AYs immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made. He may also issue notice for the relevant years, relevant years are years that fall beyond 6 AYs but not later than 10AYs. This benefit is available to AO if he has the books/ documents/ other evidence which reveals that income which has escaped assessment amounts to or is likely to amount to Rs. 50 lakhs or more. This limit of 50lakhs is in aggregate of all the years.
The assessee is required to file the return in response to the notice even if
- Assessee is not required to file the return of income under section 139.
- Assessee has filed the return u/s 139/ 142(1)/ 148
- Assessment or reassessment have been completed
- Assessment or reassessment is still pending
All the provisions of Income Tax shall be levied even in case of assessment u/s 153A i.e. penalties of under-reporting of income, penalties of non-filing of returns, even the interest u/s 234A/B/C etc.
TIME LIMIT FOR COMPLETION OF ASSESSMENT (153B)
Time-limit for completion of assessment under section 153A is given u/s 153B
As per section 153B, notwithstanding anything contained in section 153, the Assessing Officer shall make an order of assessment or reassessment
- in respect of each assessment year falling within six assessment years referred above within a period of two years from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed;
- in respect of the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A, within a period of two years from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed.
In the case of search, the conclusion of search is the date as recorded in the last panchnama drawn in relation to any person in whose case the warrant of authorisation has been issued and in the case of requisition under section 132A the date shall be actual receipt of the books of account or other documents or assets by the Authorised Officer.
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