Rashmi
Quick Summary
The Supreme Court has ruled that the income tax (I-T) department cannot reopen completed assessments under Section 153A of the I-T Act, unless incriminating material is found during search and seizure operations. This means that the tax authorities cannot issue reassessment orders for completed asse
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FAQ :
The Supreme Court has ruled that tax authorities cannot reopen completed assessments under Section 153A of the Income Tax Act without finding 'incriminating material' during search and seizure operations.
No, completed or 'unabated' assessments can still be reopened under Sections 147 and 148 of the Income Tax Act if other material proof indicates that certain income has escaped assessment.
Incriminating material refers to evidence found during a search under Section 132 or requisition under Section 132A of the Income Tax Act that suggests undisclosed income.
Section 153A, introduced in 2003 and withdrawn in 2021, aimed to ease procedural hurdles by requiring taxpayers subjected to a search to file revised returns for six preceding years.
The ruling is expected to provide significant relief to taxpayers by reducing the scope for arbitrary reassessments and limiting the reopening of completed assessments to cases where incriminating material is found.
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