S.153A Income Tax Act| Can Assessments Be Reopened If No Incriminating Material Is Found During Search? Supreme Court Reserves Judgment

The Supreme Court on Thursday reserved its judgment on whether in an assessment under section 153A of the Income Tax Act, besides the incriminating material found during search, such materials which the Assessing Officer has on hand and the third party records available can be relied on to assess total income, or whether the assessment has to confined only to the incriminating material. The Supreme Court on Thursday reserved its judgment on whether in an assessment under section 153A of the Income Tax Act, besides the incriminating material found during search, such materials which the Assessing Officer has on hand and the third party records available can be relied on to assess total income, or whether the assessment has to confined only to the incriminating material seized during the search. Suppose some further material is found during a search, during the assessment under 153A, not undisclosed income but incriminating material, then that can be said to be reassessment but not assessment" ASG: "153A says 'Assess or reassess total income'" Justice Shah: "That would be akin to 147" ASG: "Yes, the restrictions of 147 can be applied here. Under the guise of collecting material under reassessment or assessment under 153A, there cannot be a roving enquiry, we have noted that point also" Senior Advocate Arvind Datar, also for some of the assessees: "If assessment is pending or reassessment is pending and a search takes place, then everything is at large before the officer.