Once an assessment is linked to a search operation, it must be reopened under Section 153A/153C & not under Section 1480
Bombay High Court’s Landmark Ruling on Search-Related Assessments
In a significant judgment, the Bombay High Court has ruled that when an assessment is linked to a search operation, it must be reopened under Section 153A/153C of the Income Tax Act, 1961. The Court held that reopening such assessments under Section 148 is not permissible.
This decision reinforces the principle that the correct procedural route must be followed in tax assessments and prevents undue hardship on taxpayers due to procedural irregularities.
This ruling will have a major impact on reassessment proceedings and provide clarity on the jurisdictional scope of Sections 153A/153C and 148.
A welcome decision ensuring fairness and procedural consistency in tax administration!
The copy of the order is as under:
