Section 132, read with section 132A of the income-tax Act,
1961 - search & seizure - Assessment of preceding years in search cases
during election period
CIRCULAR NO. 10/2012 [F. NO. 282/22/2012-IT (INV. V)], DATED 31-12-2012
As per provisions contained in section 153A and 153C of
the Income Tax Act, 1961, the Assessing Officer is required to issue
notice for assessing or reassessing the total income for six assessment
years immediately preceding the assessment year relevant to the previous
year in which search is conducted or requisition is made.
2. In consequence of the powers conferred by
clauses (64) and (66) of the Finance Act, 2012 the Central Government
amended the Income Tax Rules, 1962, to insert a new Rule 112F after the
existing Rule 112E, specifying the class or classes of cases in which
the Assessing Officer shall not be required to issue notice for
assessing or reassessing the total income for six assessment years
immediately preceding the assessment year relevant to the previous year
in which search is conducted or requisition is made.
3. The aforesaid amendment was introduced with a
view to reduce infructuous and unnecessary proceedings under the Income
Tax Act, 1961 in cases where a search is conducted u/s 132 or
requisition made u/s 132A and cash or other assets are seized during the
election period, generally on a single warrant, and no evidence is
available, or investigation required, for any assessment year other than
the assessment year relevant to the previous year in which search is
conducted or requisition is made.
4. In such cases, the officer investigating the
case, with the approval of the Director General of Income Tax, shall
certify that -
(i) the search is conducted under section 132
or the requisition is made under section 132A of the Act in the
territorial area of an assembly or parliamentary constituency in respect
of which a notification has been issued under section 30, read with
section 56 of the Representation of the People Act, 1951; or
(ii) the assets seized or requisitioned are
connected in any manner to the ongoing election process in an assembly
or parliamentary constituency; and
(iii) no evidence
is available or investigation is required for any assessment year other
than the assessment year relevant to the previous year in which search
is conducted or requisition is made.
