Liability of Duty for unaccounted income

[NAVIN SINGHAL]

CAN EXCISE / SALES TAX DEPARTMENT ASK FOR DUTY / TAX ON THE UNACCOUNTED INCOME DISCLOSED AT THE TIME OF SEARCH PROCEEDINGS U/S 132 OF INCOME TAX. AND ALSO CAN THEY RESUME / IMPOUND DOCUMENTS RELATED TO OTHER GROUP ASSOCIATES EVEN IF THEY ARE NOT REGISTERED WITH EXCISE/SALES TAX AUTHORITY AND THE PRODUCT NOT COVERED UNDER EXCISE/SALES TAX

AI Summary

Can Excise or Sales Tax Demand Duty on Unaccounted Income Found in Section 132 Searches? A query was raised about whether the excise or sales tax department can demand duty or tax on unaccounted income revealed during search proceedings under Section 132 of the Income Tax Act. Additionally, it questioned if they can seize documents related to other group associates not registered with the excise or sales tax authority, and whose products are not covered under such taxes. The response indicated that while the department might demand tax based on estimated evasion, the assessee can request a formal show cause notice before being compelled to pay. The approach depends on specific facts and evidence.