The Delhi High Court's Guiding Light on Post-Search Tax Assessments: Application of Section 153C, powers of tax authorities and the rights of assessees.

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....3C of the Income Tax Act, 1961 The Delhi High Court's decision in the cited case of 2018 centers around a challenge to the validity of Section 153C of the Income Tax Act, 1961. This section is pivotal in the context of tax assessments following a search and seizure operation under Section 132 of the Act. The petitioners sought to question the provisions of Section 153C on various grounds, bri....

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....ties. The High Court, in its deliberation, reaffirmed these principles and directed that assessments under Sections 153A/153C should be in line with the legal interpretations provided in Kabul Chawla and subsequent judgments. This decision underscores the court's stance on ensuring that tax assessments post-search operations are conducted within the bounds of the law, ensuring fairness and tr....

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....evenue to proceed afresh and re-determine the assessment under Sections 153A/153C in accordance with the law, taking into account the judgments referred to in the decision. This directive ensures that the assessments are made in a manner that is just, fair, and in accordance with the principles laid down in landmark cases. The decision also highlighted the importance of adhering to the principles....