1 / 15

INCOME TAX SEARCH U/S 132

INCOME TAX SEARCH U/S 132. PRESENTED BY: DR. RAJ K. AGARWAL M.COM, FCA, FCS, AICWA, LLB, Ph.D M/S RAKESH RAJ & ASSOCIATES CHARTERED ACCOUNTANTS. INCOME TAX SEARCH U/S 132. Highly rigorous process. Harshest weapon with Department. Invading privacy completely. INCOME TAX SEARCH U/S 132.

thina
Download Presentation

INCOME TAX SEARCH U/S 132

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INCOME TAX SEARCH U/S 132 PRESENTED BY: DR. RAJ K. AGARWAL M.COM, FCA, FCS, AICWA, LLB, Ph.D M/S RAKESH RAJ & ASSOCIATES CHARTERED ACCOUNTANTS

  2. INCOME TAX SEARCH U/S 132 Highly rigorous process. Harshest weapon with Department. Invading privacy completely. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  3. INCOME TAX SEARCH U/S 132 • OBJECTIVE: -To collect evidences of undisclosed income/investment. -To seize undisclosed assets. -Deterrence effect RAKESH RAJ & ASSOCIATES, Chartered Accountants

  4. INCOME TAX SEARCH U/S 132 • Initiation of Search Proceedings: • Proper search warrant by competent authority. • Process of search, rights and duties of the assessee and authorized officer. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  5. INCOME TAX SEARCH U/S 132 Role of the counsel: - Managing from outside - Collection of evidences of the assets likely to be seized. - Reach the premises, if called for. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  6. INCOME TAX SEARCH U/S 132 • During Search Proceedings: • Inventorisation of cash/ jewellery/ stock/ other valuables. • Collection of documents/ books of accounts/ loose papers and seeking explanation. • Recording statement. • Restraint on locker/ Almirah etc. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  7. INCOME TAX SEARCH U/S 132 • Seizure of Assets/Documents: • Undisclosed Assets • Cash • Jewellery • Other valuables: FD’s/ Shares/ Securities/ KVPs/ IVPs/ NSCs/ Hundies/ Title Deeds of properties. • Books of accounts, documents, loose papers and electronic data. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  8. INCOME TAX SEARCH U/S 132 • Declaration of undisclosed income • Why surrender? • To avoid penalty • To mitigate rigors of search. • Penalty provisions. • Penalty u/s 271(1)(c) for earlier years. • Penalty u/s 271AAA for specified years. • Manner of declaration of undisclosed income. • Not for earlier years otherwise admitted concealment. • For specified years- break up- nature/ manner of earning/ year wise/ person wise. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  9. INCOME TAX SEARCH U/S 132 • Post search proceedings. - Opening of restraints. - Recording statement- explaining documents. • Retraction of statement. -Break up of surrendered income. -Third parties enquiries- surveys. -Letters for: • Appropriating cash seized • Release of assets explained. • Photocopy of documents • Release of jewellery. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  10. INCOME TAX SEARCH U/S 132 • Appraisal report • Finding of investigation- internal report to A.O. • Decision of jurisdiction/ centralization. • Reply to questionnaire. • Records belonging to other persons- 153C proceedings. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  11. INCOME TAX SEARCH U/S 132 • Preparation prior to notice from A.O. • Completion of details/ collection of evidences. • Unrecorded documents- explanations- application of independent mind. • Ledgerisation of individuals’ affairs. • Illegal search- writ to high court- evidentiary value of documents seized. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  12. INCOME TAX SEARCH U/S 132 • Assessment proceedings before A.O. • Notice for filing returns u/s 153A. • Obtaining photocopies, if not received earlier. • Filing of returns for six years. • All other assessment proceedings to abate. • Normal assessment proceedings- completion of assessment of six years and search year. • Approval by Joint Commissioner RAKESH RAJ & ASSOCIATES, Chartered Accountants

  13. INCOME TAX SEARCH U/S 132 • 153A Assessments - issues emerging : • Earlier years in appeal- parallel proceedings to continue. • Fresh assessment of disclosed income without any new information- whether constitutionally valid. • Interest u/s 234A for late filing of return. • Cash seized- whether adjustable as advance tax. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  14. INCOME TAX SEARCH U/S 132 • Notice u/s 153C- issues emerging. • Books of accounts/ documents belonging to other persons. • Recording of satisfaction and handing over records to other A.O. • Time limit for issuing notice. • Document of one year still assessment of seven years. • Abatement of other assessment proceedings. RAKESH RAJ & ASSOCIATES, Chartered Accountants

  15. THANK YOU RAKESH RAJ & ASSOCIATES, Chartered Accountants

More Related