1. Notice for Filing Return [Section 153A(1)(a)]:
Where a search is initiated under section 132 or books of account, or other documents or any assets are requisitioned under section 132A, the Assessing Officer shall issue notice to such person requiring him to furnish, within such period as may be specified in the notice, return of income in respect of six assessment years and of the relevant assessment year or years (also see amendment below) immediately preceding the assessment year relevant to the previous year in which the search was conducted under section 132 or requisition was made under section 132A.
Such return of income shall have to be furnished in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed. Further, in the case of such return, all the provision of the Act shall, as far as may be, apply accordingly as if such return were a return required to be furnished under section 139.
Once notice is issued under section 153A. Return must be filed even if no incriminating documents discovered during search.
Notice can be given for a period beyond the 6th. Assessment Year in certain cases (Fourth proviso to section 153A)
Notice under the said section can be issued for an relevant assessment year or years (i.e. beyond the sixth assessment year already provided up to the tenth assessment year) if—
(i) the Assessing Officer has in his possession books of accounts or other documents or evidence which reveal that the income which has escaped assessment amounts to or is likely to amount to Rs. 50,0,000 or more in one year or in aggregate in the relevant four assessment years (falling beyond the sixth year):
(ii) such income escaping assessment is represented in the form of "asset":
(iii) the income escaping assessment or part thereof relates to such year or years.
Further, the Act has stated that the amended provisions of section 153A shall apply where search under section 132 is initiated or requisition under section 132A is made on or after the 1.4.2017.
Consequential amendments have been made in section 153B and section 153C to provide a reference to the relevant assessment year or years as referred to in section 153A.
Although the return under section 153A has to be filed within the time specified in the notice but no time limit is prescribed for issue of such notice under section 153A. Notice under section 153A, can be issued at any time. Such time limit would however, be circumscribed by the limitation period for making an assessment under section 153B.
Section 153A contemplates issue of notice for 6 years and of the relevant assessment rear or years preceding the search but does not contemplate a notice for the year of search or requisition. Therefore, no return is required to be filed for the year of search under section 153A. Regular return for the year of search has to be filed as per the provisions of section 139.
2. Assessment in case of Search or Requisition [Section 153A(1)(b)]:
Notwithstanding anything contained in section 139, section 147, section 148. section 149, section 151 and section 153, in the case of a person where a search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A after 31.5.2003, the Assessing Officer shall assess or reassess the total income of six assessment years and of the relevant assessment year or years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made.
3. Separate Assessment of 6 Assessment Years and for the relevant Assessment Year or Years [First proviso to Section 153A]:
As per proviso I to section 153A, the Assessing Officer shall assess or reassess the total income of each of such six assessment years and for the relevant assessment rear or rears.
Assessment or reassessment, if any, relating to any assessment year falling within the period of six assessment years and for the relevant assessment ;'ear or years pending on the date of initiation of the search under section 132 or requisition under section 132A, as the case may be, shall abate. [Second prov iso to section 153A]
The words mentioned here are assessment or reassessment pending on that date shall abate and as such the appeal or revision or rectification if pending on the date of initiation of search under section 132 or requisition under section 132A shall not abate.
Notice under section 153A may not be issued for six assessment years and for the relevant assessment year or years in notified cases [Third proviso to section 153A(1)]
As per third proviso to section 153A. the Central Government may by rules made by it and published in the Official Gazette [except in cases where any assessment or reassessment pending on the date has abated under the second proviso (see above)], specif5i the class or classes of cases in which the Assessing Officer shalt not be required to issue notice for assessing or reassessing the total income for six assessment years and for the relevant assessment rear or rears immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made.
However, action for completion of assessment proceedings for the assessment year relevant to the previous year in such class of cases in which search or requisition has been made would be taken. This would result in initiating assessment proceedings only for the assessment year relevant to the previous year in which search or requisition has been made.
4. Assessment of Income of any other person [Section 153C]
(A) Assessment of past 6/10 years, as the case may be
As per section 153C(1), notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that—
(a) any money, bullion, jewellery or other valuable article or thing, seized or requisitioned. belongs to or
(b) any books of account or documents, seized or requisitioned, pertains or pertain to. or any information contained therein, relates to,
a person other than the person referred to in section 153A. then, the books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person and that Assessing Officer shall proceed against each such other person and issue such other person notice and assess or reassess income of such other person in accordance with the provisions of section 153A if he is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for the relevant assessment year or years referred to in section 153A(1).
In other words, firstly, the satisfaction will be recorded by the Assessing Officer who is handing over the books of accounts or documents or assets to the Assessing Officer having jurisdiction over such other person.
Secondly, the Assessing Officer to whom the books of account or documents or assets seized or requisitioned have been handed over, before proceeding under section 153A, will have to record the satisfaction that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for the relevant assessment year or years referred to in section 153A(1).
Further, proceedings under section 1 53A(1) read with section 153C can be taken by him only for those assessment year or years to which undisclosed income belong instead of past 6/10 assessment years, as the case may be.
(B) Assessment of Previous Year of Search or Requisition
Assessment in respect of the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is mode under section 132A, in case of other person [Section 153C(2)]:
Where books of account or documents or assets seized or requisitioned referred to in section 153C(1) has been received by the Assessing Officer having jurisdiction over such other person after the due date for furnishing the return of income for the assessment year relevant to the previous year in which search is conducted under section 132 or requisition is made under section 132A and in respect of the assessment rear—
(a) no return of income has been furnished by such person and no notice under section 142(1) has been issued to him, or
(b) a return of income has been furnished by such person but no notice under section 143(2) has been served and limitation of serving the notice under section 143(2) has expired, or
(c) assessment or reassessment, if any, has been made, before the date of receiving of books of account or documents or assets seized or requisitioned by the Assessing Officer having jurisdiction over such other person,
such Assessing Officer shall issue the notice and assess or re-assess total income of such other person for such assessment year in the manner provided in section 153A(1).
The above amendment has been made only in respect of assessment year relevant to the previous year in which search is conducted. In this case, the assessment / re-assessment of such assessment year shall be made in the manner provided under section 153A and not under section 143/144/147 provided both the following conditions are satisfied:
(1) The books of accounts, documents, assets, etc. are received by the jurisdictional officer after due date of filing the return of income of the relevant assessment year, and
(2) Any of the conditions mentioned in clause (a) or (b) or (c) is satisfied. |
