Misty Meadows Private Limited versus Union of India and Others (Punjab and Haryana High Court)
Invoking of Section 153A of Income Tax Act merely on the basis of ‘panchnama’ in absence of execution of search u/s 132 of the Income Act
Section 153A of the Income Tax Act, 1961, is a crucial provision dealing with income assessment in cases of search or requisition. It empowers the Assessing Officer to issue notices requiring the furnishing of income returns for specified assessment years. Section 153A starts with a non obstante clause. This article delves into the intricacies of Section 153A, analyzing its application, judicial interpretations, and implications.
The Section 153A of Income Tax Act reads as under:
Notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after the 31st day of May, 2003, 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 falling within six assessment years referred to in clause (b), in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and the provisions of this Act shall, so far as may be, apply accordingly as if such return were a return required to be furnished under section 139;”
Initiation and conduct of search are the twin requirements for issuing the notice u/s 153A. Initiation of search is sine qua non for issuance of a notice u/s 153A calling for the returns of income. The actual conduct of search is the requirement. Refer- CIT v. Wipro Finance Ltd. [2009] 176 Taxman 233 (Kar). The word ‘search’ is not defined in the IT Act. In the case of Raghu Raj Pratap Singh v. Asstt. CIT [2009] 179 Taxman 73 (Allahabad), it was held as under. “The simple meaning of the word ‘search’ is to explore all over in trying to find something; to examine closely; to examine for hidden articles; to scrutinize; to probe; to put to test; to make an examination, etc., to look or hunt; a thorough examination, etc. In normal course, what the authorised officer is to do, is to find out, detect and unearth the concealed income or wealth for which purpose the warrant of authorisation has been issued.
