Following Steps will ease to handle raid :
1. PAN can be migrated to Central Circle thus making common place for all files at same common place where assessment under raid can be done. Order U/S 127 of IT Act is passed by CIT for PAN migration. Assessee are intimated by mail.
2. Assessment under raid starts by issuing notices u/s 153A by Central Circle (DCIT/ JCIT) for last 6 Assessment Years from Date of search requesting to file Income Tax Return u/s 153A.
3. To file Income Tax Return u/s 153A of the IT Act within the time prescribed in notice which may be 15 days to 45 days. (It will be easy if return is filed through some ready available package)
4. To file Copy of return filed u/s 153A with covering letter to Central Circle. Power of attorney can also be attached.
5. Generally, notice are issued by central circle requesting following documents :
6. To expedite the process above documents can be submitted along suo motto with reply u/s 153A.
7. AO may require more information while assessment and notice u/s 142(1) is issued by Central Circle. His requirement can be classified as:
8. Reply u/s 142(1) should be filed within the time prescribed in notice which may be 15 days to 45 days.
9. Mazerernama to be operated in presence of Director/ authorised representative i.e permitting Assessing officer to copy data of seized Pen Drive/ Hard disk to another Hard Disk. No one is authorised to use seized pen drive/ hard disk. Assessing officer can only work on copied data .
10. Explanation of the all the item seized as mentioned in panchanama, should be submitted.
11. Generally two/ three hearing are conducted by Assessing officer before passing the Order.
12. Assessing officer can counter check the facts submitted by assesee with the 3rd Party.
13. Assessing officer will re-transfer the file if appeal is not filed to respective department.
1. What is time period given under Search and Seizure ?
AO shall make an order of assessment within following months from the end of the financial year in which search was completed
|Year in which search is conducted||Before1/4/18||In between||After 31/3/19|
|a) Prior 6 year||21||18||12|
|b) Same year|
2. Only Company mentioned in panchanama will be taken for assessment u/s 153A ?
CNo, Assessing officer can add more related Companies for assessment by justifying and taking approval from higher authority.
3. Will work u/s 153A goes year wise separately ?
Generally there are many Companies of the Group in which raid is conducted. Work for each Company for each year will be done separately but one should ensure that closing figure should match with opening of next year.
4. Can return filed u/s 153A be revised?
Yes one can revise the return.
5. What is benefit of filing return u/s 153A ?
This is opportunity that one can rectify any mistake which cannot be done as it is time barred. You can also correct carried forward losses or even MAT carried forward along with correction in Income.
6. What will happen if IT authority (one from Investing Wing) takes a declaration in stamp paper from 3rd party that transaction done through him is bogus ?
3rd party can deny by submitting retraction in stamp paper if previous statement was signed by him by giving undue pressure and was not given willing fully.
7. What will happen to the company which was taken under u/s 147 ?
As only last 6 Assessment years are taken u/s 153A and as last 7th year will become time barred u/s 147 in March. Assessment of It may be taken u/s 147. Assessee has to submit Income Tax Return u/s 147 and should get its assessment. AO will give order before December of that year.
Date of Search in Nov’2017
Year taken u/s 153A will be AY 2012-17 i.e 6 years
Year which will be time barred u/s 147 in March 18 is AY 2011-12.
8. No seizure of stock in trade
Bullion, jewellery or other valuable article or thing, being stock-in-trade of the business, shall not be seized.
9. When and What can be seized ?
Books of accounts and/or documents further following items can be Seized if they are not accounted/ disclosed in books or :-
i) Bullion i.e Gold, Silver etc
iii) Jewellery, Ornaments etc
iv) Silver articles and silverware
v) Other Valuables, locker keys, FD etc
10. Who keep the seized assets ?
Any asset or document so seized shall be handed over to the Assessing Officer having jurisdiction over such person within a period of 60 days from the date on which the last of the authorizations for search was executed. Thereafter, such Assessing Officer exercises all other powers.
11. Can Seized Asset can be release ?
On satisfaction of the following conditions, the amount of any existing liability may be recovered out of such asset and the remaining portion of the asset may be released to the person from whose custody the assets were seized –
12. What is time limit for release of asset ?
Asset or any portion thereof shall be released within a period of 120 days from the date on which the last of the authorisations for search was executed.
13. When Seized Asset cannot be release ?
Seized asset shall be retained by the Department during pendency of appeal filed by Revenue.
14. What happen to excess money?
After discharging all liabilities if any assets or proceeds thereof left, then it shall be returned to the persons from whose custody such assets were seized.
15. Is Interest payable on the asset seized ?
Where the aggregate amount of money (either seized or realized through sale of seized assets) exceeds the aggregate of the amount required to meet the liabilities, Government shall pay simple interest at the rate of ½% p.m. The interest shall be payable from the date immediately following the expiry of the period of 120 days from the date on which the last of the authorisations for search was executed.
16. What are the rules regarding seizure of jewellery ?
In the case of wealth tax assessee, Items found in excess of gross weight disclosed in the wealth tax return only can be seized.
For other person, gold jewellery to the extent of 500gms per married lady, 250 gms per unmarried lady and 100 gms per male member of the family, need not be seized.
17. Can you get refund as per appeal order even if department has gone to tribunal ?
Yes, Appeal order will be followed and money can be refunded. No need to wait for Tribunal Order. Fulfillment of each order is a separate issue.