Applicability of amendment to Sec. 132(5). - Income Tax - 1581/CBDT

INSTRUCTION NO. 1581/CBDT Dated: October 17, 1984 Sub Clause (a) of Sec.23 of the Taxation Laws (Amendment) Act, 1984 seeks to amend sub-section (5) of sec.132 of the I.T.Act relating to search and seizure. The amendment provides that the order under the said sub-section estimating the undisclosed income in a summary manner on the basis of the materials available, calculating the tax thereon, etc., shall be made by the ITO within 112 days of the seizure, as against 90 days at present. The amendment comes into force w.e.f. 1st October, 1984. 2. The Board had occasion to consider whether the extended time limit will apply in all cases where the existing time limit of 90 days has not elapsed on 1st October, 1984. A view is possible that in all cases where seizures have been made on or after 3rd July, 1984, time limit of 90 days gets extended. However, the Board after due consideration has decided that in cases where seizures are made on or before 30th September, 1984 orders u/s.132(5) shall be passed within 90 days of the seizure. These instructions may be brought to the notice of all concerned.