search servey and seizure

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Ans. If the case of assessee is complicated and Assessing Officer lacksunderstanding, assessee can request Assessing Officer to appoint aneutral Chartered Account, u/s 142(2A) for special audit who will audit thebooks of the assessee and the income of the assessee can be justly andeasily quantified.Q. 20 During the course of search assessment whether an assessee can makea waiver petition to the Commissioner of Income-tax u/s 273 A or 273 A(4) of the Income Tax Act, 1961?Ans. Yes.Q. 21 During the course of pendency of search assessment whether anassessee can approach settlement commission for settlement of his casewhich involves complexities?Ans. Yes. But one has to wait for 120 days to complete from the date of searchor receipt of Assessment order, but after 31-5-2007 it will not be possibleto go to settlement Commission in case of Search cases.Q. 22 Jewellery belonging to woman found at the time of search for which thereis no documentary proofs of purchase. Whether the same would betreated for the purpose of search Assessment?Ans. Income Tax Department has come out with number of circulars that amarried woman should not be questioned on jewellery acquisence upto500 grams and an unmarried Lady upto 250 gms. male members upto 100gms. Therefore if jewellery found to this extent then Authorised officerscan not seize that Jewellery and no addition can be made in SearchAssessment. This view is confirmed by ITAT in number of cases.Q. 23 if an assessee has jewellery or other valuables which was purchased 06years prior to the date of search and has proof of purchase of the same, orholding the same then, whether the Income-tax Department can makeaddition in respect of the said jewellery or other valuables to the totalincome of the appellant?Ans. No. Income-tax Department cannot question the Assessee in respect oftransactions prior to 06 Assessment years.
Q. 24 Pass book maintained by an assessee, whether constitutes books ofAccount?Ans. Yes.Q. 25 What are the precautions to be taken by an Assessee to avoidcomplications during search?Ans. The following are few suggestions / tips :a) Regularise the books.b) Regularise the jewellery held i.e. physical quantity of jewelleryshould tally with the jewellery declared. Particularly of diamondjewellery and weight of gold & silver ornaments or articles.c) Since the tax rates are very low, it is advisable to pay tax and keepwhite money instead of holding black money in tension.Such precautions would help an assessee in a great way. Presently anassessee is required to pay maximum Income tax @ 33%, Wealth tax @1% only on few items, Gift tax, Estate duty are abolished and expendituretax is not applicable to individuals. Therefore with such great reliefs it isadvisable that an assessee complies with the provisions of law and paysproper tax regularly to lead carefree life and particularly when cases areselected under scrutiny by computer only @ 2% of returns filed.It is worthwhile to mention that in earlier years Income tax was @ 97.75%,wealth tax as @ 13%, Estate duty was @ 85%, Gift tax was @ 85%,Expenditure tax was @ 30% and many many other taxes at very highrates and over and above that there was 100% scrutiny of returns filed.Q. 26 Assessee is Builder/ Developer / Contractor and following projectcompletion basis of accounting whether after search department canchange his system of accounting, particularly in view of AS7 and power ofAO u/s 145(2).
Page 1 and 2: AMENDED PROVISIONS OF ASSESSMENT RE
Page 3 and 4: ordered or where stay order by cour
Page 5 and 6: Ans. Yes, he can be present. :Q. 5
Page 7 and 8: search, to leave the premises or he
Page 9 and 10: and the question is as to who can m
Page 11 and 12: and 1-4-2007 to 8-7-2007. Thus, the
Page 13 and 14: The form of return was 2Bnot specif
Page 15 and 16: ii) Wall Street Construction ltd. v
Page 17 and 18: Q.9 Whether additions under search
Page 19: investments are less than income, o
Page 23 and 24: Q. 28 During the course of search i
Page 25 and 26: such properties but the possibility
Page 27 and 28: jewellery is received by way of gif
Page 29 and 30: Under rule 6F of Income-tax Rules,
Page 31 and 32: he may be better advised to give th
Page 33 and 34: Note: In case the duplicate books o
Page 35 and 36: SURVEYProvisions relating to Sectio
Page 37 and 38: h) Where accounts are maintained on
Page 39 and 40: Director, Deputy Director, Assessin
Page 41 and 42: viii.Care should be taken to ensure
Page 43: of such business or profession to f

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