After a search (Section 1322025 Act: s. 247) or survey (Section 133A2025 Act: s. 253), the assessment depends on seized material, statements recorded and the explanations given. For searches initiated on or after 1 September 2024, a block assessment is made under Chapter XIV-B; earlier searches are assessed under Sections 153A2025 Act: no equivalent/153C2025 Act: no equivalent.
Income Tax, across India (faceless)
Overview
Statements recorded during search or survey are often relied on heavily. Retraction, if justified, must be made promptly and with evidence. The seized material must be analysed entry by entry.
When this applies
- Search or survey at business or residential premises
- Material found in another person’s search (153C / block cases)
Time limit
Documents needed
- Panchnama, inventory and copies of seized documents
- Statements recorded
- Books and records for the block period
How we handle it
- Obtain copies of seized material and statements
- Prepare an entry-wise explanation and reconciliation
- Draft replies for each year or block
- Defend in appeal where additions are made on estimates or loose papers
Points to note
- Do not make declarations without understanding the tax and penalty consequences
- Additions on uncorroborated loose papers can be contested
What usually comes next
- Appeal before Commissioner of Income Tax (Appeals)Appealing the assessment
- Reply to Penalty Notice u/s 270A and Other PenaltiesPenalty proceedings that follow
- Stay of Income Tax Demand During AppealStay of the demand raised
Frequently asked questions
Should I retract a statement given in survey?
Only on proper grounds and with evidence, and as early as possible. Get the facts reviewed before deciding.
Official sources
- Income Tax e-Filing portalincometax.gov.inReply to notices under e-Proceedings and file first appeals
- Authenticate a notice (DIN check)incometax.gov.inConfirm that a notice or order is genuine before replying
- Income Tax Departmentincometaxindia.gov.inActs, rules, circulars and the 1961 to 2025 section utility
Received a notice or an order?
Call us to talk it through. Keep the notice and its response date handy.