Quick Summary
The Supreme Court has held that the income tax (I-T) department cannot reopen completed assessments under the Section 153A of the I-T Act, unless incriminating material is unearthed during search and seizure operations. Any other material emanating from the search cant be relied on for issuing re-assessment orders. The ruling, tax experts said, could give much relief to taxpayers, as it reduces the scope for arbitrary re-assessments by the taxman. A battery of current litigation is due to rea
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
The Supreme Court has ruled that the income tax department needs to unearth 'incriminating material' during search and seizure operations to reopen completed assessments under Section 153A of the Income Tax Act.
No, according to the Supreme Court ruling, the income tax department cannot reopen completed assessments under Section 153A if no 'incriminating material' is found during search and seizure operations. Other materials from the search cannot be used for reassessment orders in such cases.
The ruling primarily affects Section 153A of the Income Tax Act, which deals with assessing income in the case of a 'searched person'. This section was withdrawn in 2021 but still applies to past cases.
Yes, completed assessments can still be reopened under Sections 147 and 148 of the Income Tax Act if the assessing officer finds 'any other material proof' indicating that income has escaped assessment.
While not explicitly defined in the provided text, 'incriminating material' refers to evidence unearthed during search and seizure operations that directly points to undisclosed income or tax evasion.
CAclubindia
