Issue/Justification

Considering application of section 132(3) read with section 132(8A), search in actual practice is kept open for a period of 60 days in case no incriminating evidence is found against the assessee or the assessee has not surrendered any unaccounted/concealed income. This period of 60 days is a very long period and frivolous additions made during such period are generally knocked down in appeals. This practice only leads to more litigation and thereby leads to wastage of precious resources of both assessee and department. It also hampers the ease of doing business which is high on the agenda of the current government.

Suggestion

It is suggested that the said period of 60 days specified in section 132(8A) be reduced so as to avoid genuine hardship caused to the assesse in carrying on his business.

Source-  ICAI Pre-Budget Memorandum–2018 (Direct Taxes and International Tax)

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Category : Income Tax (27505)
Type : News (13643)
Tags : Budget (1956) Budget 2018 (399) ICAI (2604)

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