section 132

Budget 2017: AO need not disclose Reason to believe to conduct a search

Income Tax - It is proposed to insert an Explanation section 132 and 132A to declare that reason to believe or reason to suspect, as the case may be, shall not be disclosed to any person or any authority or Appellate Tribunal....

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Penalty on Undisclosed Income unearthed during Search & Survey

Income Tax - The legislature has intentionally drafted the provisions relating to Search and Survey in the statue book of Income Tax Act, 1961 with the target of unearthing the undisclosed income of any person in form of any money, bullion, jewellery or other valuable article or thing. ...

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Application of seized assets – Existing liability does not include advance tax payable

Income Tax - Application of seized assets under section 132B The existing provisions contained in section 132B of the Income-tax Act, inter alia, provide that seized assets may be adjusted against any existing liability under the Income-tax Act, Wealth-tax Act, the Expenditure-tax Act, the Gift-tax Act and the Interest-tax Act and the amount of liabil...

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Not necessary to issue S.132 authorisation or make a requisition u/s. 132A separately in the name of each person in search cases

Income Tax - Under the existing provisions of section 132 and section 132A, an authorisation can be issued or a requisition can be made, as the case may be, where the Director General or the Director in consequence of information in his possession has reason to believe that any person is in possession of any money, bullion, jewellery or other valuable...

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CBDT directed to re-opening of all cases under the search and seizure label and those claimed deduction u/s. 80IB, 80A

Income Tax - The Central Board of Direct Taxes ( CBDT) has directed re-opening of all cases under the search and seizure label, income-escaping assessments and deductions claimed from profits and gains on all eligible businesses....

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Onus of ensuring presence of deponent cannot be shifted to assessee

Principal Commissioner of Income Tax Vs Best Infrastructure (India) Pvt. Ltd. (Delhi High Court) - S. 68: Statements recorded u/s 132 (4) do not by themselves constitute incriminating material. A copy of the statement together with the opportunity to cross-examine the deponent has to provided to the assessee. If the statement is retracted and/or if cross-examination is not provided, the statement...

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Notice U/s. 153A issued without search is bad in law

ACIT Vs. K.G. Finvest Pvt. Ltd. (ITAT Delhi) - In the instant case, it is the assessment of person allegedly searched, which is disputed before us, unlike the notice issued for the assessment of `other person’ before the Hon’ble Supreme Court. Even otherwise, the issue of invalidity of the search warrant in that case was not raised at any po...

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Statement cannot be sole basis for addition in block assessment

CIT Vs Harjeev Aggarwal (Delhi High Court) - Statements recorded would certainly constitute information and if such information is relatable to the evidence or material found during search, the same could certainly be used in evidence in any proceedings under the Act as expressly mandated by virtue of the explanation to Section 132(4)....

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Seizure of blank cheques during search can’t be treated as an unexplained investments in absence of Additional Evidence

Sri Laxmi Narayan Agarwal Vs ACIT (ITAT Hyderabad) - The Hon’ble Tribunal held that all the persons questioned have confirmed that cheques have been handed over to the appellant only as a measure of security for supply of scrap or for the purpose of obtaining the loan, but all of them have denied having obtained any loan from the appellant. The stat...

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Statement U/s. 132(4) without any supporting material does not have any evidentiary value

M/s. Avishkar Infrastructure Pvt. Ltd. Vs DCIT (ITAT Mumbai) - The sole basis of the Department to assess profit of Rs.70.00 lacs is based upon the statement recorded under section 132(4) of the Act. It is a matter of fact that by the time statement was recorded, the entire project was not sold by the assessee. Only two shops were sold....

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Adjustment of Seized cash against advance tax- Explanation 2 to Section 132B is prospective in nature: CBDT

Circular No. 20/2017-Income Tax - (12/06/2017) - Dispute arose between the Department and the assessees with regard to adjustment of such seized/requisitioned cash against advance tax liability etc. Several Courts held that on an application made by the assessee, the seized money is to be adjusted against the advance tax liability of the assessee....

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Recent Posts in "section 132"

Onus of ensuring presence of deponent cannot be shifted to assessee

Principal Commissioner of Income Tax Vs Best Infrastructure (India) Pvt. Ltd. (Delhi High Court)

S. 68: Statements recorded u/s 132 (4) do not by themselves constitute incriminating material. A copy of the statement together with the opportunity to cross-examine the deponent has to provided to the assessee. If the statement is retracted and/or if cross-examination is not provided, the statement has to be discarded. The onus of ensuri...

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Notice U/s. 153A issued without search is bad in law

ACIT Vs. K.G. Finvest Pvt. Ltd. (ITAT Delhi)

In the instant case, it is the assessment of person allegedly searched, which is disputed before us, unlike the notice issued for the assessment of `other person’ before the Hon’ble Supreme Court. Even otherwise, the issue of invalidity of the search warrant in that case was not raised at any point of time prior to […]...

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Adjustment of Seized cash against advance tax- Explanation 2 to Section 132B is prospective in nature: CBDT

Circular No. 20/2017-Income Tax (12/06/2017)

Dispute arose between the Department and the assessees with regard to adjustment of such seized/requisitioned cash against advance tax liability etc. Several Courts held that on an application made by the assessee, the seized money is to be adjusted against the advance tax liability of the assessee. ...

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Budget 2017: AO need not disclose Reason to believe to conduct a search

It is proposed to insert an Explanation section 132 and 132A to declare that reason to believe or reason to suspect, as the case may be, shall not be disclosed to any person or any authority or Appellate Tribunal....

Read More
Posted Under: Income Tax | ,

Statement cannot be sole basis for addition in block assessment

CIT Vs Harjeev Aggarwal (Delhi High Court)

Statements recorded would certainly constitute information and if such information is relatable to the evidence or material found during search, the same could certainly be used in evidence in any proceedings under the Act as expressly mandated by virtue of the explanation to Section 132(4)....

Read More

Seizure of blank cheques during search can’t be treated as an unexplained investments in absence of Additional Evidence

Sri Laxmi Narayan Agarwal Vs ACIT (ITAT Hyderabad)

The Hon’ble Tribunal held that all the persons questioned have confirmed that cheques have been handed over to the appellant only as a measure of security for supply of scrap or for the purpose of obtaining the loan, but all of them have denied having obtained any loan from the appellant. The statements given by those people remains unc...

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Statement U/s. 132(4) without any supporting material does not have any evidentiary value

M/s. Avishkar Infrastructure Pvt. Ltd. Vs DCIT (ITAT Mumbai)

The sole basis of the Department to assess profit of Rs.70.00 lacs is based upon the statement recorded under section 132(4) of the Act. It is a matter of fact that by the time statement was recorded, the entire project was not sold by the assessee. Only two shops were sold....

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Penalty u/s 271(1)(c) in search assessment is tenable only if some incriminating material found during search

M/s. Bhandari Construction Company Vs DCIT (ITAT Pune)

Assessee is not liable to penalty u/s 271(1)(c) of the I.T. Act since the same was not based on any incriminating material found during the course of search. The addition was based on the basis of loan creditors found from the balance sheet already filed prior to the search along with the original return of income....

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Mere family connection cannot be a ground for transfer of cases

Relevant Case - Dillip Kumar Agarwal Vs CIT (Calcutta High Court)

In connection with search and seizure operations against the R group of companies, the Commissioner of Income-tax after hearing the assessees passed a reasoned order directing transfer of the cases of the assessees from the Income-tax Officers at Kolkata to Patna....

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Revenue cannot have access to data in laptops pertaining to third parties unconnected with person searched

Relevant Case - S. R. Batliboi and Co. Vs Department of Income-tax (Investigation) (Delhi High Court)

The petitioner was a firm of auditors. During the course of search and seizure operations conducted against EMAAR, the laptop computers of two employees of the petitioner, who were conducting an audit of EMAAR, were seized by the Deputy Director. ...

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