Section 153A and Search Operations - Section 153A grants the Assessing Officer (AO) jurisdiction to assess or reassess total income for up to six previous years following a valid search under Section 132 or requisition under Section 132A. It specifically aims to bring undisclosed income to tax discovered during search or requisition, replacing the earlier distinction between disclosed and undisclosed income. Once a search under Section 132 is conducted and assessments are completed under Section 153A, the assessments are considered final for those years, and generally, they cannot be reopened solely under Section 148 unless certain conditions are met. Sources: Principal Commissioner of Income Tax, Central-3 VS Abhisar Buildwell P. Ltd. - 2023 0 Supreme(SC) 402, ["Sunny Jacob Jewellers Gold Hyper Market VS Commissioner Of Income Tax - Kerala"]
Reopening Under Section 148 Post-Assessment Under Section 153A - Multiple judgments affirm that assessments finalized under Section 153A are protected from reassessment under Section 148 unless there is incriminating material that justifies reopening. Section 153A's provisions, including the non-obstante clause, imply that if an assessment has been completed under Section 153A, subsequent proceedings under Section 148 are not permissible unless new incriminating evidence emerges. The Supreme Court and High Court decisions support that assessments done under Section 153A are final and cannot be reopened under Section 148 without additional incriminating material. Sources: Shyam Sunder Khandelwal VS Assistant Commissioner of Income Tax - 2024 0 Supreme(Raj) 1075, ["Saluja Steel and Power Private Limited VS Income Tax Department through the Chief Commissioner of Income Tax, Ranchi - Jharkhand"], ["Subodh Agarwal VS State of U. P. - Allahabad"], ["Abharan Jewellers, Represented By Its Gpa Holder Sri Pratap M. Kamath vs Additional Commissioner Of Income Tax, Bengaluru - Karnataka"], ["DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2 (2) CHENNAI CHENNAI vs SOUTHERN AGRIFURANE INDUSTRIES PVT LTD CHENNAI - Income Tax Appellate Tribunal"], ["INMAD00000574425"], ["INMAD00000128028"]
Legal Precedents and Judicial Viewpoints - Courts have consistently held that once an assessment is completed under Section 153A, the jurisdiction to reopen assessments under Section 148 is barred unless specific incriminating material is found that was not available during the original search. The presence of such material can justify reopening under Section 148 despite the prior assessment under Section 153A. The key is whether the subsequent material is incriminating and relates to the assessment years in question. Sources: Shyam Sunder Khandelwal VS Assistant Commissioner of Income Tax - 2024 0 Supreme(Raj) 1075, ["Saluja Steel and Power Private Limited VS Income Tax Department through the Chief Commissioner of Income Tax, Ranchi - Jharkhand"], ["Subodh Agarwal VS State of U. P. - Allahabad"]
Conclusion - Once the assessment under Section 153A is completed after a search under Section 132, it generally cannot be reopened under Section 148 unless new, relevant incriminating material is discovered. The law and judicial rulings emphasize the finality of assessments made under Section 153A, barring reopening under Section 148, unless specific incriminating evidence justifies it. Therefore, after completing assessment under Section 153A, the possibility of reopening under Section 148 is limited and depends on the emergence of new incriminating evidence. All sources
Summary: In summary, assessments completed under Section 153A following a search are typically final and cannot be reopened under Section 148 unless new incriminating material is discovered that was not available during the original assessment. The legal framework and judicial precedents support the finality of Section 153A assessments, reinforcing that reopening under Section 148 requires fresh, incriminating evidence.
