TaxTMI 
TaxTMI 
Section 153A of the Income Tax Act: A Critical Analysis of the Supreme Court's Interpretation in the Context of Search and Seizure
X X X X Extracts X X X X
X X X X Extracts X X X X
....mmentary on the interpretation and application of Section 153A of the Income Tax Act, 1961, particularly in the context of completed/unabated assessments and the requirement for incriminating material. The article examines the Supreme Court judgment in a recent case, analyzing the arguments put forth by both the Revenue and the assessees, the legal principles involved, and the final decision of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt insights into this aspect of tax law. II. Case Background The appeals before the Supreme Court involved a common question of law and facts, specifically the scope of assessment under Section 153A of the Income Tax Act 1961. The central issue was whether, in the context of completed assessments, the Assessing Officer (AO) is confined to assessing only incriminating material found during the se....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to assessing only the incriminating material unearthed during the search. They argued that permitting assessment of income beyond this scope would render the provisions of Sections 132 and 132A otiose, and turn searches into a tool for enlarging the limitation period for regular assessments, which is not permissible. IV. Analysis of Legal Principles The crux of the debate revolves around the in....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... V. Supreme Court's Decision After considering the submissions and the legal framework, the Supreme Court upheld the view that for completed or unabated assessments, the AO's jurisdiction under Section 153A is confined to the incriminating material found during the search. The Court concurred with the reasoning of the High Courts, particularly the Delhi High Court in the Kabul Chawla cas....