Section 271AAB Penalty Provisions Not Applicable for Searches Initiated After 1st Sept 2024

Last updated: 01 February 2025

Save Share

Quick Summary

The penalty provisions under Section 271AAB of the Act, which currently apply to searches initiated after 15th December 2016, will no longer be applicable for searches starting on or after 1st September 2024. This change aligns with the introduction of 'Block Assessment' provisions via the Finance Act, 2024, and aims to remove any ambiguity regarding the application of Section 271AAB to searches conducted from this date forward. The amendment takes effect from 1st September 2024.

Non-applicability of Section 271AAB of the Act

The existing provisions of sub-section (1A) of section 271AAB of the Act relates to penalty in respect of searches initiated after 15.12.2016.

2. Vide Finance Act, 2024, provisions of 'Block Assessment' (Chapter XIV-B) were introduced for searches initiated under section 132 of the Act on or after the 1st day of September, 2024. Although section 271AAB of the Act is clear that its provisions are not applicable to proceedings conducted under section 158BC of the Act, it is proposed to remove any ambiguous interpretation of its applicability to searches conducted on or after 01.09.2024.

Section 271AAB Penalty Rules Change for Searches Post-Sept 2024

3. Therefore, it is proposed to amend section 271AAB of the Act to provide that its provisions shall not be applicable to the assessee in whose case search has been initiated under section 132 on or after the 1st day of September, 2024.

4. This amendment will take effect from the 1st day of September, 2024.

[Clause 75]

FAQ :

The penalty provisions of Section 271AAB will not apply to searches initiated on or after 1st September 2024.

The amendment takes effect from 1st September 2024.

The Finance Act, 2024 introduced 'Block Assessment' provisions for searches initiated on or after 1st September 2024, which necessitates this change to Section 271AAB.

Yes, the existing provisions of Section 271AAB relate to penalty in respect of searches initiated after 15th December 2016 and remain applicable for searches initiated before 1st September 2024.

The amendment is proposed to remove any ambiguous interpretation of Section 271AAB's applicability to searches conducted on or after 1st September 2024.

273 Views Comment Share Union Budget & Policy Report

News posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Click here to Login and post comments OR