2023 (8) TMI 1488 - SCH - Income Tax

Assessment u/s 153A - completed/ unabated assessments - incriminating material found during the course of search u/s 132 or requisition u/s 132 or not? - HELD THAT - Going by the law laid down therein in respect of completed/ unabated assessments, no addition could be made by the assessing officer in the absence of any incriminating material found during the course of search u/s 132 or requisition u/s 132 of the Income Tax Act, 1961. At the same time, it was made clear thereunder that the completed/ unabated assessments could be reopened by the assessing officer in exercise of powers u/s 147/148 of the Income Tax Act, subject to fulfillment of conditions as envisaged/ mentioned under the said Sections. Subject to the same, this Special Leave Petition stands dismissed.

Summary

Issues:
1. Interpretation of provisions under Sections 132, 147, and 148 of the Income Tax Act, 1961.
2. Scope of assessing officer's powers in completed/unabated assessments.
3. Conditions for reopening completed/unabated assessments.

Analysis:
1. The Supreme Court, in this judgment, addressed the interpretation of provisions under Sections 132, 147, and 148 of the Income Tax Act, 1961. The Court emphasized that no addition could be made by the assessing officer in completed/unabated assessments without any incriminating material found during a search under Section 132 or requisition under the same section. This ruling was based on a common judgment in Civil Appeal No. 6580/2021 and related matters.

2. The Court clarified the scope of the assessing officer's powers in completed/unabated assessments, highlighting that such assessments could be reopened by the assessing officer under Sections 147/148 of the Income Tax Act. However, this reopening is subject to the fulfillment of conditions as specified under the mentioned sections. Therefore, the judgment delineated the boundaries within which the assessing officer can operate in reopening completed/unabated assessments, ensuring compliance with the statutory requirements.

3. In conclusion, the Court dismissed the Special Leave Petition in this case, indicating that the matter was governed by the principles established in the aforementioned common judgment. The Court's decision underscored the importance of adhering to the conditions set forth under Sections 147/148 of the Income Tax Act for reopening completed/unabated assessments. Any pending applications were directed to be disposed of in accordance with the principles elucidated in the judgment.