spot_img

Controversy over existence of seized “incriminating material” for re

Date:

Share post:



the taxtalk

 10 total views

Controversy over existence of seized “incriminating material” for re (assessment) under section 153A/153C of the Income Tax Act laid to rest by the Hon’ble Supreme Court!

 



Lead case: Abhisar Buildwell P. Ltd. Case (CA No. 6580 of 2021) (SC) & Others.

Ratio: Assessment under Section 153A of the Act is linked with the search and requisition actions. Therefore, only in a case where the undisclosed income is found on the basis of incriminating material arising out of Search/requisition; the Assessing Officer would assume the jurisdiction to assess or reassess total income.

Take Away:

Type I cases: Abated/Incomplete Assessments: Irrespective of Incriminating material found or not (de hors); Total Income can be assessed for that Year. It is not clear whether sub.se. 153A(2) is to be resorted to.

Type II cases: Unabated/Completed Assessments: Only if Incriminating material seized; Total Income can be re-assessed

Type III cases: Unabated/Completed Assessments: If No Incriminating material seized; Total Income can not be re-assessed u/section 153A/153C. Assessments quashed, though notices are valid.

Type IV cases: Unabated/completed Assessments: Can be re-opened u/section 147/148 of the Act – Revenue’s Powers for section 148/147 are saved.

Type IV cases and the saving of right of Revenue to issue section 148 notices/reassess under section 147 pose certain interesting scenarios!! Will it go the Ashish Agarwal way?

 

The copy of the order is as under:

 

Abhisar Buildwell – Kabul Chawla

 



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img

Related articles

7 top travel trends that will reign this festive season

With the highly anticipated festive season just around the corner, India’s travel aspirations...

Landslide chaos at Europe’s Alpine Tunnel puts Italy to France travel network under strain

When a landslide blocked an ageing Alpine tunnel connecting Italy and France this...

Etihad Airways doubles daily flights from Abu Dhabi to Kuala Lumpur

Etihad Airways is doubling its daily flights between Abu Dhabi and Kuala Lumpur,...

Biswanath Ghat in Assam selected as Best Tourism Village of India 2023

ANI | | Posted by Zarafshan Shiraz, Sonitpur (assam) ...
spot_img