Search, according to normal dictionary meaning, means to look out, to seek or to find something the presence of which is suspected etc. Seize means to take possession of goods, contrary to the wishes of the owner or to take forcible possession. From income tax point of view, in common parlance search is referred to as ‘RAID’. However, there is no such term as raid anywhere in income tax law.
Search & seizure-from income tax perspective:
Search operations are exploratory exercises on the basis of information with the income tax department to find hidden income and wealth in cases of tax payers, who have not disclosed their true financial state of affairs in discharge of their tax obligations.
Seizure implies taking possession of assets, which have not been disclosed to the Income-tax Department and of accounts/documents, papers which contain details of unaccounted wealth/income not disclosed to the income tax authorities.
Thus, search and seizure is a very powerful weapon in the armory of income tax department to unearth any concealed income or valuables and to check the tendencies of tax evasion thereby mitigating the generation of black money.
1. Who can authorize (i.e., issue search warrants) proceedings u/s 132
Sec.132 empowers the Principal Director General or Director General or Principal Director or Director or the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner to authorize proceedings under this section.
Tax point: Proceeding means any proceeding in respect of any year, which may be pending on the date on which a search is authorized under this section or which may have been completed on or before such date and includes also all proceedings which may be commenced after such date in respect of any year.
- Who can conduct search Income tax authority, having power to initiate search u/s 132, can authorize its subordinate(s) (not below the rank of Income tax officer) to conduct search. Following subordinates can be authorized
| Authorized Officer who can conduct search | Authorized from |
| Additional Director or Additional Commissioner or Joint Director, Joint Commissioner, Assistant Director, Deputy Director, Assistant Commissioner, Deputy Commissioner or Income tax officer | Principal Director General or Director General or Principal Director or Director or Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner |
| Assistant Director, Deputy Director, Assistant Commissioner, Deputy Commissioner or Income tax officer | Additional Director or Additional Commissioner or Joint Director or Joint Commissioner (on the basis of authorization from above authority and being empowered by the Board) |
- Power of authorized officer
While conducting search, authorized officer has following powers –
1. Enter and search any building, etc.: Enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account, other documents, money, bullion, jewellery or other valuable article or thing are kept.
2. Break open the lock of any door, etc.: Break open the lock of any door, box, locker, safe, almirah or other receptacle, where the keys thereof are not available.
3. Search person: Search any person who –
- has got out of; or
- is about to get into; or
- is in, the building, place, vessel, vehicle or aircraft if the authorised officer has reason to suspect that such person has secreted about his person any books of account, other documents, money, bullion, jewellery or other valuable article or thing.
4. Require any person to facilitate the authorised officer: Require any person who is found to be in possession or control of any books of account or other documents maintained in the form of electronic record, to afford the authorised officer the necessary facility to inspect such books of account or other documents.
5. Seizure: Seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search.
6. Place marks of identification: Place marks of identification on any books of account or other documents or make extracts or copies therefrom.
7. Make inventory: Make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing.
8. Examine on oath: Examine on oath any person who is found to be in possession or control of any books of account, documents, money, bullion, jewellery or other valuable article or thing. Any statement made by such person during such examination may thereafter be used as evidence in any proceeding.
The examination of any person may be not merely in respect of any books of account, other documents or assets found as a result of the search, but also in respect of all matters relevant for the purposes of any investigation connected with any proceeding under Act.
Taxpoint
♦ 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 but the authorized officer shall make a note or inventory of such stock-in-trade.
♦ Extension of jurisdictional area
Where any building, place, vessel, vehicle or aircraft is within the area of jurisdiction of any Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, but such authority has no jurisdiction over such person; and
Such authority has reason to believe that any delay in getting the authorisation from the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner having jurisdiction over such person may be prejudicial to the interests of the revenue,
– then it shall be competent for him to exercise the above powers.
♦ Handing over of seized assets to the Assessing Officer having jurisdiction:
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.
♦ Extension of Authorisation [Sec. 132(1A)]
Where a search for any books of account, other document, money, bullion, jewellery or other valuable article or thing is authorized; and
Other Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner in consequence of information in his possession, has reason to suspect that such document or asset is kept in any other building, place, vessel, vehicle or air craft not mentioned in the authorization,
then such other Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner can authorize the officer to search such other building, place, vessel, vehicle or air craft.
Taxpoint: The reason to suspect, as recorded by the income-tax authority, shall not be disclosed to any person or any authority or the Appellate Tribunal.
♦ Deemed or constructive Seizure [Second Proviso to Sec. 132(1)]
Conditions
Where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to reason of its –
Where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to reason of its –
being of a dangerous nature.
Procedure
The authorised officer may serve an order on –
the owner; or
the person who is in immediate possession or control of any valuable article or things,
– that he shall not remove, part with or otherwise deal with such article or thing without the prior permission of such authorised officer.
Effect
Such action of the authorised officer shall be deemed to be seizure of such article or thing.
Notes
a) No such order can be passed for any article or thing, being stock-in-trade.
b) Though such order can also be passed for reasons other than those mentioned above, but in that case, the order shall not be deemed to be seizure of such article or things and it shall not be in force for a period exceeding 60 days from the date of the order [Sec. 132(3) & (8A)]
- Provisional Attachment
Where
1. during the course of the search or seizure; or
2. within a period of 60 days from the date on which the last of the authorisations for search was executed, the authorised officer may attach provisionally any property belonging to the assessee and for the said purpose, the provisions of the Second Schedule shall, mutatis mutandis, apply.
Such attachment shall be subject to following conditions:
a) The authorised officer is satisfied that for the purpose of protecting the interest of revenue, it is necessary to do so.
b) The reasons for such provisional attachment should be recorded in writing
c) Previous approval (in writing) of the Principal Director General or Director General or the Principal Director or Director has taken.
Every provisional attachment shall cease to have effect after the expiry of 6 months from the date of such order.
The authorised officer may make a reference to a Valuation Officer referred to in sec. 142A, who shall estimate the fair market value of the property in the manner provided under that section and submit a report of the estimate to the said officer within a period of 60 days from the date of receipt of such reference.
♦ Authorisation and assessment in case of search or requisition [Sec. 292CC]
It shall not be necessary to issue an authorisation u/s 132 or make a requisition u/s 132A separately in the name of each person.
Where an authorisation u/s 132 has been issued or requisition u/s 132A has been made mentioning therein the name of more than one person, the mention of such names of more than one person on such authorisation or requisition shall not be deemed to construe that it was issued in the name of an association of persons or body of individuals consisting of such persons.
Though authorisation u/s 132 or requisition u/s 132A has been made mentioning therein the name of more than one person, the assessment or reassessment shall be made separately in the name of each of the persons mentioned in such authorisation or requisition.
♦ Time limit for retention [Sec. 132(8)]
The books of account or other documents seized or deemed seized shall not be retained by the authorised officer for a period exceeding 30 days from the date of the order of assessment u/s 153A.
Exception
It can be retained for more than 30 days on fulfillment of the following conditions –
1. The reasons for retaining the same are recorded in writing; and
2. The (prior) approval of the Principal Chief Commissioner or Chief Commissioner, Principal Commissioner or Commissioner, Principal Director General or Director General or Principal Director or Director for such retention is obtained.
Taxpoint
1. Maximum retention
The aforesaid authorities shall not authorise the retention of the books of account and other documents for a period exceeding 30 days after all the proceedings in respect of the years for which the books of account or other documents are relevant, are completed.
2. Power of the Board to pass an order [Sec. 132(10)]
Where a person is legally entitled to the books of account or other documents seized;
Such person objects for any reason to the approval given by the authorities; and
Such person makes an application to the Board stating therein the reasons for such objection and requesting for the return of the books of account or other documents. then the Board may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
Presumption in case of search [Sec. 132(4A)]
Where any books of account, other documents, money, bullion, jewellery or other valuable article or thing are, or is found in the possession or control of any person in the course of search, it may be presumed that –
Such books of account, other documents, money, bullion, jewellery or other valuable article or thing belongs to such person;
The contents of such books of account and other documents are true;
The signature and every other part of such books of account and other documents which purport to be in the handwriting of any particular person, are in that person’s handwriting; and
In the case of a document stamped, executed or attested, it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested
Other Provisions
1. Help from Government officers [Sec. 132(2)]: It shall be the duty of every police officer or of any officer of the Central Government or of both officer to assist authorised officer to invoke his power.
2. Right to make copies or take extract [Sec. 132(9)]: The person from whose custody books of account or other documents are seized may make copies thereof or take extracts therefrom. Such right can be exercised in the presence of the authorized officer or any other person empowered by him in this behalf, at such place and time as the authorized officer may appoint in this behalf.
3. Power of Board to make rules [Sec 132(14)]: The Board may make rules in relation to any search or seizure providing the procedure to be followed by the authorised officer –
i. for obtaining ingress (i.e. right to enter) into any building, place, vessel, vehicle or aircraft to be searched where free ingress thereto is not available;
ii. for ensuring safe custody of any books of account or other documents or assets seized.
4. The provisions of the Code of Criminal Procedure, 1973 relating to searches and seizure shall apply, so far as may be, to search and seizure [Sec. 132(13)].
Application of Seized or Requisitioned Assets
The seized assets may be adjusted with:
1. The amount of any existing liability under –
i) The Income-tax Act, 1961;
ii) The Wealth-tax Act, 1957 (now abolished); ► The existing liability does not include advance tax payable.
2. The amount of liability determined on completion of the assessment u/s 153A;
3. The amount of liability determined on completion of the assessment of the year relevant to the previous year in which search is initiated or requisition is made; (including any penalty levied or interest payable in connection with such assessment); and
d) The amount in respect of which such person is in default or is deemed to be in default or the amount of liability arising on an application made before the Settlement Commission.
Release of Asset ( Section 132 B)
Condition for release of asset
Where the following conditions are satisfied, 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 –
1. The person concerned makes an application to the Assessing Officer within 30 days from the end of the month in which the asset was seized for release of asset;
2. The nature and source of acquisition of such asset is explained to the satisfaction of the Assessing Officer; and
3. The Assessing Officer obtains the prior approval of the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.
♦ 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 u/s 132 or for requisition u/s 132A, as the case may be, was executed.
No seized asset shall be retained by the Department during pendency of appeal filed by Revenue [Naresh Kumar Kohali -vs.- CIT (P&H)]
♦ Order of assets to be applied for discharging liability
The above liability shall be discharged by applying the seized asset in the following order –
a) Money;
b) Asset other than money (as laid down in the Third Schedule).
It is to be noted that the assessee shall be discharged of the liability to the extent of the money and asset so applied. However, Assessing Officer shall not be precluded from the recovery of above liabilities by any other mode.
♦ Discharge of 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.
♦ Interest payable to the assessee
Where the aggregate amount of money (either seized or realized through sale of assets) seized 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 u/s 132 or requisition u/s 132A was executed) to the date of completion of the assessment u/s 153A.
♦ Powers to call for Information ( section 133)
The income-tax authority [being Assessing Officer, Deputy Commissioner (Appeals), Joint Commissioner or Commissioner (Appeals)] may –
1. Require any firm to furnish him with a return of the names and addresses of the partners of the firm and their respective shares;
2. Require any Hindu undivided family to furnish him with a return of the names and addresses of the manager and the members of the family;
3. Require any person whom he has reason to believe to be a trustee, guardian or agent, to furnish him with a return of the names of the persons for or of whom he is a trustee, guardian or agent, and of their addresses;
4. Require any assessee to furnish a statement of the names and addresses of all persons to whom he has paid in any previous year rent, interest, commission, royalty or brokerage, or any annuity (not being any annuity taxable under the head “Salaries”) amounting to more than Rs.1000, together with particulars of all such payments made;
5. Require any dealer, broker or agent or any person concerned in the management of a stock or commodity exchange to furnish a statement of the names and addresses of all persons –
a) to whom he or the exchange has paid any sum in connection with the transfer of assets; or
b) on whose behalf or from whom he or the exchange has received any such sum, – together with particulars of all such payments and receipts;
6. Require any person, including a banking company or any officer thereof, to furnish information in relation to such points or matters, or to furnish statements of accounts and affairs, – which will be useful for, or relevant to, any enquiry or proceeding under this Act.
Taxpoint
Where no proceeding is pending, the power u/s 133 shall not be exercised by any income-tax authority below the rank of Principal Director or Director or Principal Commissioner or Commissioner, other than the Joint Director or Deputy Director or Assistant Director, without the prior approval of the Principal Director or Director or the Principal Commissioner or Commissioner.
It is to be noted that power referred in point (6) above may also be exercised by the Principal Director General or Director-General, the Principal Chief Commissioner or Chief Commissioner, the Principal Director or Director or the Principal Commissioner or Commissioner or the Joint Director or Deputy Director or Assistant Director.
2. Who can survey
The income-tax authority being Principal Commissioner or Commissioner, a Joint Commissioner, a Principal Director or Director, a Joint Director, an Assistant Director or a Deputy Director or an Assessing Officer or a Tax Recovery Officer or Inspector (in some circumstances) has right to survey.
However, no action shall be taken by an Assistant Director or a Deputy Director or an Assessing Officer or a Tax Recovery Officer or an Inspector of Income-tax without obtaining the approval of the Joint Director or the Joint Commissioner
♦ Jurisdiction of Income-Tax Authority for conducting survey
An income-tax authority may conduct survey at –
1. Any place within the limits of the area assigned to him; or
2. Any place occupied by any person in respect of whom he exercises jurisdiction; or
3. Any place in respect of which he is authorised for the purposes of this section by such income-tax authority, who is assigned the area within which such place is situated or who exercises jurisdiction in respect of any person occupying such place, – where a business or profession or an activity for charitable purpose is carried on.
♦ Power of Income Tax Authority
While conducting survey, income tax authority may exercise following power –
1. Enter in such place of business;
2. Require any proprietor, trustee, employee or any other person who may at that time and place be attending or helping in, the carrying on of such business or profession or such activity for charitable purpose –
a) To afford him the necessary facility to inspect such books of account or other documents as he may require and which may be available at such place; Inspector is also considered as income-tax authority for this purpose.
b) To afford him the necessary facility to check or verify the cash, stock or other valuable article or thing which may be found therein; and
c) To furnish such information as he may require as to any matter which may be useful for, or relevant to, any proceeding under this Act.
3. Place marks of identification on the books of account or other documents inspected by him and make extracts or copies therefrom; Inspector is also considered as income-tax authority for this purpose.
4. Impound and retain in his custody any books of account or other documents inspected by him;
5. Make an inventory of any cash, stock or other valuable article or thing checked or verified by him;
Record the statement of any person, which may be useful for, or relevant to, any proceeding under this Act.
Proceeding means any proceeding under this Act in respect of any year which may be pending on the date on which the powers under this section are exercised or which may have been completed on or before such date and includes also all proceedings under this Act which may be commenced after such date in respect of any year.
Taxpoint
1. Deemed place of business or profession or activity for charitable purpose is carried on: Where the person carrying on the business or profession or activity for charitable purpose states that any of his books of account or other documents or any part of his cash or stock or other valuable article or thing relating to his business or profession or activity for charitable purpose are kept, then survey shall also be conducted at that place.
2. In case where survey is for the purpose of verifying that tax has been deducted or collected at source as per relevant provisions of the Act, in that case the income-tax authority cannot take exercise power mentioned in point 4 and 5 (above).
2. Restriction on Income-tax Authority
An income-tax authority shall not –
1. Impound any books of account or other documents without recording his reasons for doing so; or
2. Retain in his custody any books of account or other documents for a period exceeding 15 days (exclusive of holidays) without obtaining the approval of the Principal Chief Commissioner or the Chief Commissioner or the Principal Director General or the Director General or the Principal Commissioner or the Commissioner or the Principal Director or the Director thereof, as the case may be;
3. Remove or cause to be removed any cash, stock or other valuable article or thing. d) The place of business or profession cannot be sealed under survey – [Shyam Jewellers -vs.- CIT (All)]
3. Time for survey
An income-tax authority may enter into –
| Place where business or profession is carried on | During the business hours |
| In case of deemed place of business or profession | Only after sunrise and before sunset |
♦ Survey of certain expenditure [Sec. 133A(5)]
1. The income tax authority (including Inspector), having regard to the nature and scale of expenditure incurred by an assessee, in connection with any function, ceremony or event, is of the opinion that it is necessary or expedient to do so, he may, at any time after such function, ceremony or event, require –
Assessee, who incurred such expenditure; or
Any person, who is likely to possess information in respect of such expenditure,
– to furnish such information as he may require as to any matter which may be useful for, or relevant to, any proceeding under this Act.
1. He may record the statements of the assessee or any other person in this regard and such recorded statement may thereafter be used as evidence in any proceeding under this Act.
♦ Effect of non co-operation or non-compliance
If a person does not co-operate or comply during survey, the income-tax authority shall have all the powers u/s 131(1) for enforcing compliance with the requirement made.
Inspector) may, for the purpose of collecting any information, which may be useful for, or relevant to the purposes of this Act:
a) Enter into —Any building or place within the limits of the area assigned to such authority; or Any building or place occupied by any person in respect of whom he exercises jurisdiction, – where a business or profession is carried on.
b) Require any proprietor, employee or any other person who may at that time and place be attending or helping in such business or profession to furnish such information as may be prescribed
♦ Time for Entrance
An Income-tax authority may enter into such place only during the hours at which such place is open for the conduct of business or profession.
♦ Restriction on Income-tax Authority
An income-tax authority shall not remove any books of account or other documents, cash, stock or other valuable article or thing.
♦ Power to call information by Prescribed Income Tax Authority ( Sec 133 C)
1. The prescribed income-tax authority (being Principal Director General or Director General or Principal Director or Director) may, for the purposes of verification of information in its possession relating to any person, issue a notice to such person requiring him, on or before a date to be specified therein, to furnish information or documents verified in the manner specified therein, which may be useful for, or relevant to, any inquiry or proceeding under this Act.
2. Where any information or document has been received in response to a notice, the income-tax authority may process such information or document and make available the outcome of such processing to the Assessing Officer.
3. The Board may make a scheme for centralised issuance of notice and for processing of information or documents and making available the outcome of the processing to the Assessing Officer.
♦ Power to Inspect Register of Companies ( Sec 134)
The Income tax authority [being Assessing Officer, Deputy Commissioner (Appeals), Joint Commissioner, Commissioner (Appeals) or any other authorized person] may inspect and take copies of any register of the members, debenture- holders or mortgagees of any company or of any entry in such register.
♦ Power of Certain authorities ( Sec 135)
The Income tax authorities (being Principal Director General or Director General or Principal Director or Director, the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner and the Joint Commissioner) shall be competent to make any enquiry under this Act, and for this purpose shall have all the powers that an Assessing Officer has under this Act in relation to the making of enquiries.
3. Assessment in case of Search or Requisition ( Sec 153 A)
Where a search is initiated u/s 132 or books of account, other documents or any assets are requisitioned u/s 132A, the following provision shall be followed:
Save as otherwise provided in sec. 153A, 153B, 153C and 153D all other provisions shall apply to the assessment made under this section also.
♦ Procedure
Notice
The Assessing Officer shall issue notice to such person requiring him to furnish the return of income:
1. in respect of each assessment year falling within 6 assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made; and
2. for the relevant assessment year or yea
Relevant assessment year shall mean an assessment year preceding the assessment year relevant to the previous year in which search is conducted or requisition is made which falls beyond 6 assessment years but not later than 10 assessment years from the end of the assessment year relevant to the previous year in which search is conducted or requisition is made.
No notice for assessment or reassessment shall be issued by the Assessing Officer for the relevant assessment year or years unless:
a) The Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to Rs. 50 lakh or more in the relevant assessment year or in aggregate in the relevant assessment years; ● Asset shall include immovable property being land or building or both, shares and securities, loans and advances, deposits in bank account.
b) The income referred above or part thereof has escaped assessment for such year or years; and
c) The search u/s 132 is initiated or requisition u/s 132A is made on or after 01-04-2017
♦ Time limit for furnishing such return
Such return should be furnished in prescribed Form within such time, as may be specified in the notice.
♦ Assessment of income in respect of each assessment year
Assessing Officer shall assess or re-assess the total income of each of 6 assessment years and for the relevant assessment year or years.
♦ Treatment of pending assessment
1. Where any assessment or reassessment relating to any assessment year(s) falling in the said period is pending on the date of initiation of the search u/s 132 or requisition u/s 132A, the same shall abate.
2. If any proceeding initiated or any order of assessment or reassessment made has been annulled in appeal or any other legal proceeding, then, the assessment or reassessment relating to any assessment year which has abated, shall stand revived with effect from the date of receipt of the order of such annulment by the Principal Commissioner or Commissioner.
3. Such revival shall cease to have effect, if such order of annulment is set aside.
Rate of Tax
Tax rate shall be levied at the rate(s) as applicable to the respective year falling in the said period.
♦ Assessment of Income of any other Person ( Sec 153 C)
Where the Assessing Officer is satisfied that –
1. any money, bullion, jewellery or other valuable article or thing seized or requisitioned, belongs to; or
2. any books of account or documents, seized or requisitioned, pertains or pertain to, or any information contained therein, relates to, a person other than the person against whom such search or requisition is made then.
3. The books of account or documents or assets seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person; and
4. Such Assessing Officer shall proceed against each such other person and issue notice and assess or reassess income of such other person in accordance with the provisions of sec. 153A.
Tax point
1. If Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for 6 assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and for the relevant assessment year or years as referred to in sec. 153A
2. For the purpose of abatement of proceedings, the reference to the date of initiation of the search u/s 132 or making of requisition u/s 132A shall be construed as reference to the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person. [Proviso to sec. 153C(1)]
3. Where books of account or documents or assets seized or requisitioned has been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted u/s 132 or requisition is made u/s 132A and in respect of such assessment year:
4. no return of income has been furnished by such other person and no notice u/s 142(1) has been issued to him, or
5. a return of income has been furnished by such other person but no notice u/s 143(2) has been served and limitation of serving the notice u/s 143(2) has expired, or
assessment or reassessment, if any, has been made
before the date of receiving the books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person, such Assessing Officer shall issue the notice and assess or reassess total income of such other person of such assessment year in the manner provided in section 153A. [Sec. 153C(2)]
♦ Time line for Complete the Assessment u/s 153 B
| Assessment Year | Time Limit |
| Each assessment year falling within 6 assessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made
For relevant assessment year or years Assessment year relevant to the previous year in which search is conducted u/s 132 or requisition is made u/s 132A In the case of search u/s 132 In the case of requisition u/s 132A |
Within a period of 21 months from the end of the financial year, in which the last of the authorisations for search u/s 132 or for requisition u/s 132A was executed#.
In the case where the last of the authorisations for search u/s 132 or for requisition u/s 132A was executed during the financial year 2018-19: Within a period of 18 months from the end of the financial year, in which the last of the authorisations for search u/s 132 or for requisition u/s 132A was executed In the case where the last of the authorisations for search u/s 132 or for requisition u/s 132A was executed on or after 01-04-2019: Within a period of 12 months from the end of the financial year, in which the last of the authorisations for search u/s 132 or for requisition u/s 132A was executed On the conclusion of search as recorded in the last panchnama drawn in relation to any person in whose case the warrant of authorisation has been issued; On the actual receipt of the books of account or other documents or assets by the Authorised Officer. |
Tax point
In case of other person referred to in section 153C, the period of limitation for making the assessment or reassessment shall be
1. The period as referred above; or
2. 9 months (18 months: in the case where the last of the authorisations for search u/s 132 or for requisition u/s 132A was executed during F.Y. 2018-19) (12 months: in the case where the last of the authorisations for search u/s 132 or for requisition u/s 132A was executed on or after 01-04-2019) from the end of the financial year in which books of account or documents or assets seized or requisitioned are handed over u/s 153C to the Assessing Officer having jurisdiction over such other person,
whichever is later. [Proviso to sec. 153B]
Wherever reference has been given to Transfer Pricing Officer u/s 92CA, time limit in all cases shall be increased by 12 months.
♦ Computation of limitation period
In computing the above period of limitation, following period shall be excluded —
1. Time taken in reopening the whole or any part of the proceeding or in giving an opportunity to the assessee to be re-heard under the proviso to sec. 129; or
2. Period during which the assessment proceeding is stayed by an order or injunction of a court; or
3. Period commencing from the date on which the Assessing Officer directs the assessee to get his accounts audited u/s 142(2A) and ending with
4. Period commencing from the date on which the Assessing Officer makes a reference to the Valuation Officer u/s 142A and ending with the date on which the report of the Valuation Officer is received by the Assessing Officer; or
5. In case, where an application made before the Income-tax Settlement Commission u/s 245C is rejected, the period commencing from the date on which such application is made and ending with the date on which the rejection order is received by the Principal Commissioner or Commissioner; or
6. Period commencing from the date on which an application is made before the Authority for Advance Rulings u/s 245Q and ending with the date on which the order rejecting the application is received by the Principal Commissioner or Commissioner u/s 254R; or
7. Period commencing from the date on which an application is made before the Authority for Advance Ruling u/s 245Q and ending with the date on which the advance ruling pronounced by it is received by the Principal Commissioner or Commissioner u/s 245R.
8. Period commencing from the date of annulment of a proceeding or order of assessment or reassessment u/s 153A, till the date of the receipt of the order setting aside the order of such annulment, by the Principal Commissioner or Commissioner; or
9. Period (maximum period of 1 year) commencing from the date on which a reference (or first reference, if many references are made) for exchange of information is made by an authority competent under an agreement referred to in sec. 90 / 90A and ending with the date on which the information so requested is last received by the Principal Commissioner or Commissioner
10. Period commencing from the date on which a reference for declaration of an arrangement to be impermissible avoidance arrangement is received by the Principal Commissioner or Commissioner u/s 144BA(1) and ending on the date on which a direction u/s 144BA (3) or (6) or an order u/s 144BA(5) is received by the Assessing Officer
Note: If after immediate exclusion of the aforesaid period, the period available to the Assessing Officer for making an order of assessment or reassessment is less than 60 days, then such remaining period shall be extended to 60 days
Tax point
1. Where the period available to the Transfer Pricing Officer is extended to 60 days [as per proviso to sec. 92CA(3A)] and the period of limitation available to the Assessing Officer for making an order of assessment (reassessment or recomputation) is less than 60 days, such remaining period shall also be extended to 60 days.
2. Where a proceeding before the Settlement Commission abates u/s 245HA, the period of limitation available to the Assessing Officer for making an order of assessment (reassessment or recomputation) shall, after the exclusion of the period u/s 245HA(4), deemed to have been extended to 1 year.
- Prior approval necessary for assessment in cases of search or requisition [Sec. 153D]
No order of assessment or reassessment (in case of search or requisition) shall be passed by an Assessing Officer below the rank of Joint Commissioner except with the prior approval of the Joint Commissioner.
However, assessment or reassessment order may be passed by the Assessing Officer with the prior approval of the Principal Commissioner or Commissioner u/s 144BA.
For further queries or questions you can write us on [email protected] or you can call us on 9780754114.
Author Bio
I am assessed to income tax, searcch warran was issued on my individaul name, but Pr CIT transfeered my HUF case to central circle for assessment. There was no search warrant in my HUF case. Only cash of HUF at Rs. 36000/- was swized during the search and no incrementing dacument was found. Please let me know that whether DCIT Cental Circle can assessiss me u/s. 153A or 153C of I.T. Act,1961.