Section - 153A and 153C - Rationalisation of the
provisions in respect of time limits for completion of search assessment -
When Income Declaration Scheme
was launched, section 197(c) of the Finance Act, 2016 provided that in case one
fails to make a declaration under the Scheme and it is found that any income
has accrued or received or any asset has been acquired out of such income in
any year such income shall be deemed to have accrued arisen or received in the
year in which notice under section 143(1), 143(2), 148,153A or 153C for
assessment was issued. In other words, all the existing limits for reopening of
assessments were not applicable and assessment could be made in any year in
which notice is issued.
The Finance Bill, 2017 withdraws
such provision by omitting clause (c) of section 197 of the Finance Act 2016.
However, the provisions of section 153A and 153C are proposed to be amended to
provide that where tangible evidence is found during the search and the escaped
income is represented in the form of undisclosed investment, notice under
section 153A/153C can be issued for an assessment year or years beyond the
existing 6 assessment years upto the 10th assessment year. This is
subject to the condition that –
AO has in his possession books or
documents or any other evidence showing that the amount of escaped income is
likely to be Rs.50 lakhs or more in one year.
Such income is represented in the form
The income escaping assessments or part
thereof relates to such year or years.
amendment will be effective from 1st April 2017.