Post Search Proceedings
Introduction
Post-search procedures include lifting restraints, collecting seized material, preparing the appraisal report, and initiating assessment proceedings. The appraisal report summarises findings and guides the Assessing Officer in determining undisclosed income. Block assessment provisions apply to searches conducted on or after 01-09-2024.
Opening of Restraints
Restraints imposed under Section 132(3) during search may relate to locked rooms, almirahs, boxes, or lockers. After concluding the search, the authorised officer visits the premises, verifies that seals are intact, opens the restraints, examines contents, and records the statement of the searched person. Two witnesses are present, and a panchnama is prepared. Any attempt to tamper with seals may lead to appropriate action.
Collecting Records from Different Locations
Searches may occur at multiple premises nationwide. Seized records and assets from all locations are gathered and forwarded to the authorised officer with jurisdiction over the searched person. The officer then examines the collected evidence and prepares the appraisal report.
Preparation of Appraisal Report
The appraisal report is an internal, confidential document submitted to higher authorities and the Assessing Officer. It outlines the basis of the search, significant events during the search, and key evidence found. It includes details of persons covered, seized documents with annexure references, enquiries conducted, modus operandi, statements recorded, preliminary findings, recommendations, and extracts of evidence. It may also include copies of panchnamas, statements, bank statements, jewellery receipts, and cash deposit or DD details. It may identify cases warranting action under Section 158BD and include separate chapters on the Black Money Act and the PBPT Act.
Handover of Report and Seized Material
Once finalised and approved, the authorised officer hands over the appraisal report and all seized material to the jurisdictional Assessing Officer.
Initiation of Block Assessment
For searches or requisitions made on or after 01-09-2024, the Finance (No. 2) Act, 2024 reintroduces block assessment under Sections 158B to 158BI. The Assessing Officer shall assess or reassess the total income for the block period of six assessment years preceding the year of search. Any pending assessments abate and merge with the block assessment. Undisclosed income is taxable at 60%. The Assessing Officer issues a notice requiring the assessee to furnish a return within 60 days after obtaining approval from higher authorities.