section 132

Set off of loss or unabsorbed depreciation not allowed against undisclosed income

Income Tax - Set off of loss in search cases – Amendment in the provisions of section 79A of the Income Tax Act, 1961 Chapter VI of the Act deals with aggregation of income and set off or carry forward of loss. In Sections 70-80 of the Act there are specific provisions relating to set off or carry […]...

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Income Tax Search & Seizure: Importance of Statement u/s 132(4) of Income Tax Act’1961, Retraction thereof.

Income Tax - Authority and power to conduct search and seizure operations is strident and caustic power authorized by law to be taken recourse to when the conditions mentioned under different clauses of Section 132(1) of the Act are satisfied....

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New Procedure for Income escaping & search assessments

Income Tax - Under the Act, the provisions related to income escaping assessment provide that if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may assess or reassess or re­compute the total income for such year under section 147 of the Act by issuing a […]...

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Issue of section 131(1A) notice after conclusion of Income Tax Search & Seizure

Income Tax - Issuance of notice under section 131(1A) of the Income Tax Act, 1961 after conclusion of Income Tax Search and Seizure under section 132 of the Income Tax Act, 1961. Introduction: Ever since the enactment of the original Income-tax statute of 1922, the Income-tax authorities have been vested with certain powers that are coterminous with t...

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Can Income Tax survey be converted into Search & Seizure

Income Tax - Whether an Income Tax survey proceedings u/s 133A of the Income Tax Act’1961 can be converted into an Income Tax Search and Seizure action u/s 132 of the Income Tax Act ‘1961 I. Introduction: It is seen in practice that in course of search and seizure action on large business houses u/s 132 of the […]...

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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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No Section 271AAB Penalty if Search Proceedings were not initiated on assessee

Ramavatar Mandavewala Vs JT.CIT (ITAT Mumbai) - Ramavatar Mandavewala Vs JT.CIT (ITAT Mumbai) It is evident from the facts of the case that no search has been conducted on the assessee per se under section 132 of the Act. The provisions of section 271AAB warrants that upon search under section 132 of the Act, any undisclosed income, if identified...

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Addition based on mere third person evidence not sustainable

DCIT Vs Kantibhai Revidas Patel (ITAT Ahmedabad) - There was no search carried out on the appellant. The seized papers were found in the possession of Shri Vikas A. Shah. The third person evidence cannot be base for addition on the basis of any entries therein....

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HC grants Custody of Undisclosed Looted Property To I-T Dept From Police

Jahar Singh Gurjar Vs State of M.P. (Madhya Pradesh High Court) - Jahar Singh Gurjar Vs State of M.P. (Madhya Pradesh High Court) It is the case where petitioner as a complainant is seeking refund of his part of looted amount on interim custody from the trial Court. Total amount, which was recovered allegedly from the possession of the accused, was Rs.53,16000/- w...

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jurisdictional facts should be established by Dept to justify a search authorization

Shiva Cement Limited Vs Director of Income Tax (Inv.) (Orissa High Court) - Shiva Cement Limited Vs Director of Income Tax (Inv.) (Orissa High Court) It is trite that under Section 132(1) of the Act, the jurisdictional facts should be established by the Department to justify a search authorization. But there cannot be any presumption that there is no such information availa...

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HC held seizure of items duly disclosed & substantiated with documents as illegal

Harshvardhan Chhajed & Others V. DGIT & Others (Rajasthan High Court) - Harshvardhan Chhajed & Others V. DGIT & Others (Rajasthan High Court) Seizure under Income Tax has to be conducted after due care and caution. Merely on account of reasons to suspect, seizure of goods ought not to be undertaken. In fact the investigation wing has to show reason to believe th...

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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"

No Section 271AAB Penalty if Search Proceedings were not initiated on assessee

Ramavatar Mandavewala Vs JT.CIT (ITAT Mumbai)

Ramavatar Mandavewala Vs JT.CIT (ITAT Mumbai) It is evident from the facts of the case that no search has been conducted on the assessee per se under section 132 of the Act. The provisions of section 271AAB warrants that upon search under section 132 of the Act, any undisclosed income, if identified, will be the […]...

Read More

Addition based on mere third person evidence not sustainable

DCIT Vs Kantibhai Revidas Patel (ITAT Ahmedabad)

There was no search carried out on the appellant. The seized papers were found in the possession of Shri Vikas A. Shah. The third person evidence cannot be base for addition on the basis of any entries therein....

Read More

HC grants Custody of Undisclosed Looted Property To I-T Dept From Police

Jahar Singh Gurjar Vs State of M.P. (Madhya Pradesh High Court)

Jahar Singh Gurjar Vs State of M.P. (Madhya Pradesh High Court) It is the case where petitioner as a complainant is seeking refund of his part of looted amount on interim custody from the trial Court. Total amount, which was recovered allegedly from the possession of the accused, was Rs.53,16000/- whereas the petitioner is seeking [&helli...

Read More

Set off of loss or unabsorbed depreciation not allowed against undisclosed income

Set off of loss in search cases – Amendment in the provisions of section 79A of the Income Tax Act, 1961 Chapter VI of the Act deals with aggregation of income and set off or carry forward of loss. In Sections 70-80 of the Act there are specific provisions relating to set off or carry […]...

Read More
Posted Under: Income Tax |

jurisdictional facts should be established by Dept to justify a search authorization

Shiva Cement Limited Vs Director of Income Tax (Inv.) (Orissa High Court)

Shiva Cement Limited Vs Director of Income Tax (Inv.) (Orissa High Court) It is trite that under Section 132(1) of the Act, the jurisdictional facts should be established by the Department to justify a search authorization. But there cannot be any presumption that there is no such information available with the Department. The observation...

Read More

HC held seizure of items duly disclosed & substantiated with documents as illegal

Harshvardhan Chhajed & Others V. DGIT & Others (Rajasthan High Court)

Harshvardhan Chhajed & Others V. DGIT & Others (Rajasthan High Court) Seizure under Income Tax has to be conducted after due care and caution. Merely on account of reasons to suspect, seizure of goods ought not to be undertaken. In fact the investigation wing has to show reason to believe that a person is carrying […]...

Read More

Income Tax Search & Seizure: Importance of Statement u/s 132(4) of Income Tax Act’1961, Retraction thereof.

Authority and power to conduct search and seizure operations is strident and caustic power authorized by law to be taken recourse to when the conditions mentioned under different clauses of Section 132(1) of the Act are satisfied....

Read More
Posted Under: Income Tax |

New Procedure for Income escaping & search assessments

Under the Act, the provisions related to income escaping assessment provide that if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may assess or reassess or re­compute the total income for such year under section 147 of the Act by issuing a […]...

Read More
Posted Under: Income Tax |

Issue of section 131(1A) notice after conclusion of Income Tax Search & Seizure

Issuance of notice under section 131(1A) of the Income Tax Act, 1961 after conclusion of Income Tax Search and Seizure under section 132 of the Income Tax Act, 1961. Introduction: Ever since the enactment of the original Income-tax statute of 1922, the Income-tax authorities have been vested with certain powers that are coterminous with t...

Read More
Posted Under: Income Tax |

Can Income Tax survey be converted into Search & Seizure

Whether an Income Tax survey proceedings u/s 133A of the Income Tax Act’1961 can be converted into an Income Tax Search and Seizure action u/s 132 of the Income Tax Act ‘1961 I. Introduction: It is seen in practice that in course of search and seizure action on large business houses u/s 132 of the […]...

Read More
Posted Under: Income Tax |

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