Income Tax Assessment u/s 153A without incriminating material found in search: Supreme Court commences hearing [Read Order]

The Supreme Court of India has commenced the hearing of a bunch of civil appeals and petitions with regard to the income tax assessment under Section 153A of the Income Tax Act, 1961.

The first matter, COMMISSIONER OF INCOME TAX vs M/S. APAR INDUSTRIES LTD., in the long list of connected cases began to be heard way back in 2015. With the PR. COMMISSIONER OF INCOME TAX CENTRAL 3 vs ABHISAR BUILDWELL P. LTD., the present case taken up for hearing, the petitions and appeals were clubbed as the matters in question had the same question of law.

The issue before the Apex Court Bench of Justice M R Shah and Justice Sudhanshu Dhulia, was whether income tax assessment could be carried out against the assessees in the absence of any incriminating material found during search, under the Section 153A of the Income Tax Act.

Section 153A of the Income Tax Act is a provision that allows the income tax department to make assessments of income in certain cases where the regular assessment proceedings have been prevented by either the concealment of income or the destruction of books of accounts. It applies to assessments for a period of six years preceding the current assessment year, in cases where search and seizure operations have been conducted on a taxpayer's premises. The provision empowers the tax authorities to make best judgment assessments, based on the evidence available, to determine the taxpayer's income and tax liability.

In the part-hearing of the matter held on 1st February 2023, ASG N. Venkataraman, appearing for the appellant-revenue, concluded his arguments. The matter was listed for today (02.02.2023) as part-heard.

To Read the full text of the Order CLICK HERE

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