Executive Summary

This article covers the trail of changes made in section 153C from time to time and stand taken by the judiciary on the imperative issues. The section 153C was introduced by Finance Act, 2003 with effect from 01/06/2003. It replaced the provisions relating to block assessment   contained in Chapter-XIVB and introduced the new procedure for making assessment u/s 153C which is now a part of Chapter-XIV “Procedure for Assessment”. The section 153C provides that where search is conducted on a person and undisclosed assets/documents indicating undisclosed income are found as belonging to or pertains to “other person” other than,”searched person”, than in that case, proceedings u/s 153Cwould be undertaken against the “other person”. The assessment of income of “such other person”will be made in the manner provided u/s 153A. In this article, all the major issues which are in litigation during operation of section 153C are briefly discussed keeping in view the judgements of various courts and are super-scripted with each and every issue discussed below.

Posted on: September 27th, 2020