Assessment in case of search or requisition

In spite of anything stated in Sections 139, 147, 148, 149, 151, and 153, in the event of a person where a search is commenced under Section 132 or books of account, other papers, or other assets are requisitioned under Section 132A after the 31st day of May 2003, the assessing officer shall—

(i) give notice to the person requiring him to provide the return of income for each assessment year falling within six assessment years mentioned in a clause within the time frame specified in the notice, in the specified format, verified in the prescribed manner, and containing any additional information that may be required, and the requirements of this Act shall, insofar as is possible, apply as if such return were a return required to be filed;

(ii) assess or reassess the total earnings of the six assessment years that were immediately prior to the assessment year pertinent to the year when the search is done or the demand is made.

The assessing officer must determine or redetermine the total revenue for each of the six evaluation years' assessment years. On the day that the search under Section 132 is started or a request is made under Section 132A, as the case may be, any assessment or reassessment, if any, related to any assessment year occurring within the period of six years of assessment mentioned in this sub-section will cease to exist. The appeal, revision, or correction, if outstanding on the day the search was initiated, must not abate; only the assessment or reassessment ongoing on that date shall abate. The need for section 153A's applicability is that an assessment under this section may be made against a person against whom a search is begun under section 132; failure to comply with section 153A's provisions is a jurisdictional flaw that cannot be remedied. You can gain your knowledge on 80g of income tax act.

It would be essential to follow the rules outlined in section 132(1) before using the section 153A provision; the aim of section 132 would not be served by the mere issuance of an authorisation warrant without a subsequent search of the locations specified in the warrant. Therefore, in order to proceed under section 153A, an actual search must be conducted. It was determined that it was unlawful, capricious, and totally without authority to continue the assessment procedure after the start of the search without providing any notice under section 153A and passing the challenged final order of assessment. The writ petition contesting the notice under section 153A had to be rejected as premature when the assessee had responded to the notice and no final order had been made.

In the event that an appeal or other legal action has resulted in the revocation of any procedure or assessment or reassessment orders issued according to a subsection, then, the assessment or reassessment related to any assessment year that has been reduced under the second provision to that sub-section must stand resurrected as of the date of the receipt of the order of such cancellation by the Commissioner, notwithstanding anything stated in that sub-section or section 153.

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