Page Contents
Whether the assessment u/s 153A of the act pursuant to search operations for the years which stood assessed earlier is de-novo.
Whether pursuant to search operations, issuance of notice u/s 153A for the years which are already assessed does entail altogether a fresh exercise of making fresh assessment even on the issues which are not connected with the incriminating material unearthed during the course of search and seizure proceedings.
This issue ( as to whether search assessments are fresh assessments or limited assessments only w.r.t the seized material) has been a matter of judicial controversy over the years leading to high end litigation across the country so far as different courts and tribunals have given divergent views on the matter.
As a matter of big relief, the Hon’ble HC held that the completed assessments can be interfered with by the AO while making the assessment under Section 153 A only on the basis of some incriminating material unearthed during the course of search or requisition of documents or undisclosed income or property discovered in the course of search which were not produced or not already disclosed or made known in the course of original assessment.
The legal position that emerges after the aforesaid judgment is that the assessments u/s 153A has to be essentially based on the documents unearthed during the course of search and seizure operations and a completed assessment becomes final unless some incriminating material is found in the course of search.
In other words, if any issue is accepted in original assessment order, the same cannot be once again re-considered while framing assessment under section 153A except if some evidence or material is found at the time of search in respect of such issue leading to the inference of undisclosed income.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances;
New cheque clearing process in India starting from October 4, 2025 Existing System (Until Oct 3, 2025) : Clearing Method:… Read More
Overview on Tax Treatment on Gratuity in India What is Gratuity? Gratuity is a lump sum paid by an employer… Read More
Taxation Comparison: Gold Coin vs Gold Jewellery Tax Aspect Gold Coin Gold Jewellery ITR Reporting Treated as a capital asset.… Read More
Crypto Taxation & ITR Reporting Guide Tax on Profits from Crypto (Virtual Digital Assets)- Taxation U/s 115BBH Applicability on Virtual… Read More
Savings Account – Rules for Transactions to Avoid Income Tax Scrutiny The Income Tax Department monitors high-value transactions through banks’… Read More
Quick Guide on GST Marginal Scheme What is GST Marginal Scheme Meaning : The GST Margin Scheme is applicable primarily… Read More
