Assessment of income of a person other than the person in whose case search has been initiated or books of account, other documents or assets have been requisitioned

[Admin TMI]

Question - What are the proposed changes in Section 153C(1) in Finance Bil 2015 ?

[Admin TMI]

Assessment of income of a person other than the person in whose case search has been initiated or books of account, other documents or assets have been requisitioned.

Section 153C of the Act relates to assessment of income of any other person. The existing provisions contained in sub-section (1) of the said section 153C provide that notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing or books of account or documents seized or requisitioned belong to any 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.

Disputes have arisen as to the interpretation of the words “belongs to” in respect of a document as for instance when a given document seized from a person is a copy of the original document. Accordingly, it is proposed to amend the aforesaid section to provide that notwithstanding anything contained in section 139, section 147, section 148, section 149, section 151 and section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other valuable article or thing belongs to, or any books of account or documents seized or requisitioned pertain to, or any information contained therein, relates to, any 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.

This amendment will take effect from the 1st day of June, 2015.

AI Summary

Assessment under section 153C expanded to cover documents that pertain to or relate to other persons, broadening enforcement reach. The amendment to Section 153C clarifies that where seized money, bullion, jewellery or other assets belong to, or seized books of account or documents pertain to, or information contained therein relates to, a person other than the search target, the seized material must be handed to the Assessing Officer having jurisdiction over that other person, who shall then issue notice and assess or reassess that person under the applicable assessment provisions.