Section 132 of the Income Tax Act

Income-tax Act, 2025: ss.247, 249, 251

Section 132 of the Income-tax Act, 1961 corresponds to section 247 (Search and seizure), section 249 (Reasons not to be disclosed) and section 251 (Copying, extraction, retention and release of books of account and documents seized or requisitioned) of the Income-tax Act, 2025.

Read section 247 of the 2025 ActRead section 249 of the 2025 ActRead section 251 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 132 is National Thermal Power Co. Ltd. v. CIT (229 ITR 383), cited in 5,834 of the 14,598 judgments on BharatTax that turn on this section.

Leading authorities on Section 132

National Thermal Power Co. Ltd. v. CIT
229 ITR 383 · 1998 · Supreme Court
5,834
citing judgments

Appellate authorities can consider new claims and additional grounds if the relevant facts are already on record. The purpose of assessment is to correctly determine tax liability, allowing both parties to raise issues.

CIT v. Kabul Chawla
380 ITR 573 · 2016 · High Court
3,235
citing judgments

In a search assessment under Section 153A, additions can only be made for completed or non-abated assessment years if incriminating material relevant to those years is found during the search, although notice under Section 153A(1) is mandatorily issued for six assessment years preceding the search.

CIT v. Vegetable Products Ltd.
88 ITR 192 · 1973 · Supreme Court
2,664
citing judgments

When two equally plausible interpretations of a taxing provision are possible, or when conflicting views exist from non-jurisdictional High Courts, the interpretation that favors the assessee must be adopted.

Pr. CIT v. Abhisar Buildwell (P.) Ltd.
149 Taxmann.com 399 · 2023 · Supreme Court
2,379
citing judgments

An assessment under section 153A is without jurisdiction if there is an absence of incriminating material for an unabated assessment year.

CIT v. Continental Warehousing Corporation (Nhava Sheva) Ltd.
374 ITR 645 · 2015 · High Court
1,823
citing judgments

In Section 153A proceedings, the scope of assessment extends to abated proceedings, enabling an assessee to raise fresh legal claims that could have been made in regular assessment proceedings.

CIT v. Sinhgad Technical Education Society
397 ITR 344 · 2017 · Supreme Court
1,589
citing judgments

For assessments under Section 153C, a notice is legally unsustainable if there is no incriminating material correlated to the specific assessment years for which reassessment is sought.

CIT v. Simit P. Sheth
356 ITR 451 · 2013 · High Court
1,465
citing judgments

Additions for alleged bogus purchases should be restricted to the profit element, not the entire turnover. The profit element is often estimated at 12.5% of the purported bogus purchases.

Jute Corporation of India Ltd. v. CIT
187 ITR 688 · 1991 · Supreme Court
1,372
citing judgments

The Commissioner of Income Tax (Appeals) possesses co-terminus powers with the Assessing Officer and can direct the Assessing Officer to perform actions he failed to do, but cannot introduce a new source of income in the assessment. The appellate assessment must be confined to the items of income that were the subject matter of the original assessment.

Andaman Timber Industries v. CCE
281 CTR 241 · 2015 · Supreme Court
1,335
citing judgments

An assessee must be given an opportunity to cross-examine third parties whose statements are relied upon for adverse findings. Failure to provide this opportunity is a serious flaw rendering the order a nullity.

Pr. CIT v. Meeta Gutgutia
395 ITR 526 · 2017 · High Court
1,226
citing judgments

In search assessments under Section 153A, additions to income are permissible only if incriminating material is found during the search; in the absence of such material, completed assessments cannot be disturbed. A statement recorded under Section 132(4) and later retracted may not, on its own, constitute sufficient incriminating evidence for making additions.

Judgments on Section 132

ACIT Cen Cir 13, Mumbai vs. Asian Star Company Ltd, Mumbai

In the result, all appeals of the revenue as well as cross objections of the assessee are dismissed

ITA 4406/MUM/2014[2007-08]Status: DisposedITAT Mumbai31 Mar 2016AY 2007-08

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita Nos.4404 To 4410/Mum/2014 (नििाारण वषा / Assessment Years :2005-06 To 2011-2012) Acit, Central Circle-13, Room Vs. M/S Asian Star Company No.1103, 11Th Floor Old Cgo Limited, 114/116, Mittal Court, C-Wing, 11Th Floor, Building (Annex.) M.K.Road, Mumbai-400020 Nariman Point, Mumbai- 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaaca 4856 B (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & Cross Objection Nos.196, 198 To 201/Mum/2015 (Arising Out Of Ita Nos.4404,4408,4406,4405&4407/M/2014) (नििाारण वषा / Assessment Years :2005-06, 2006-07 & 2008-09) M/S Asian Star Company Vs. Acit, Central Circle-13, Room No.1103, 11Th Floor Old Limited, 114/116, Mittal Court, C-Wing, 11Th Floor, Cgo Building (Annex.) Nariman Point, Mumbai- M.K.Road, Mumbai-400020 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaaca 4856 B (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri B.Pruseth ननधाारयती की ओर से /Assessee By : Shri Rakesh Joshi सुनवाई की तायीख / Date Of Hearing : 30/12/2015 घोषणा की तायीख/Date Of Pronouncement /2016 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Revenue & Cross Objection By The Assessee Against The Order Of Cit(A), Mumbai, For The Assessment Years 2005-06 To 2011-12. 2

For Appellant: Shri Rakesh JoshiFor Respondent: Shri B.Pruseth
Section 132Section 133ASection 143(3)Section 153A

ACIT Cen Cir 13, Mumbai vs. Asian Star Company Ltd, Mumbai

In the result, all appeals of the revenue as well as cross objections of the assessee are dismissed

ITA 4405/MUM/2014[2006-07]Status: DisposedITAT Mumbai31 Mar 2016AY 2006-07

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita Nos.4404 To 4410/Mum/2014 (नििाारण वषा / Assessment Years :2005-06 To 2011-2012) Acit, Central Circle-13, Room Vs. M/S Asian Star Company No.1103, 11Th Floor Old Cgo Limited, 114/116, Mittal Court, C-Wing, 11Th Floor, Building (Annex.) M.K.Road, Mumbai-400020 Nariman Point, Mumbai- 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaaca 4856 B (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & Cross Objection Nos.196, 198 To 201/Mum/2015 (Arising Out Of Ita Nos.4404,4408,4406,4405&4407/M/2014) (नििाारण वषा / Assessment Years :2005-06, 2006-07 & 2008-09) M/S Asian Star Company Vs. Acit, Central Circle-13, Room No.1103, 11Th Floor Old Limited, 114/116, Mittal Court, C-Wing, 11Th Floor, Cgo Building (Annex.) Nariman Point, Mumbai- M.K.Road, Mumbai-400020 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaaca 4856 B (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri B.Pruseth ननधाारयती की ओर से /Assessee By : Shri Rakesh Joshi सुनवाई की तायीख / Date Of Hearing : 30/12/2015 घोषणा की तायीख/Date Of Pronouncement /2016 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Revenue & Cross Objection By The Assessee Against The Order Of Cit(A), Mumbai, For The Assessment Years 2005-06 To 2011-12. 2

For Appellant: Shri Rakesh JoshiFor Respondent: Shri B.Pruseth
Section 132Section 133ASection 143(3)Section 153A

ACIT Cen Cir 13, Mumbai vs. Asian Star Company Ltd, Mumbai

In the result, all appeals of the revenue as well as cross objections of the assessee are dismissed

ITA 4404/MUM/2014[2005-06]Status: DisposedITAT Mumbai31 Mar 2016AY 2005-06

Bench: Shri R.C.Sharma, Am & Shri Sandeep Gosain, Jm आमकय अऩीर सं./Ita Nos.4404 To 4410/Mum/2014 (नििाारण वषा / Assessment Years :2005-06 To 2011-2012) Acit, Central Circle-13, Room Vs. M/S Asian Star Company No.1103, 11Th Floor Old Cgo Limited, 114/116, Mittal Court, C-Wing, 11Th Floor, Building (Annex.) M.K.Road, Mumbai-400020 Nariman Point, Mumbai- 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaaca 4856 B (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. & Cross Objection Nos.196, 198 To 201/Mum/2015 (Arising Out Of Ita Nos.4404,4408,4406,4405&4407/M/2014) (नििाारण वषा / Assessment Years :2005-06, 2006-07 & 2008-09) M/S Asian Star Company Vs. Acit, Central Circle-13, Room No.1103, 11Th Floor Old Limited, 114/116, Mittal Court, C-Wing, 11Th Floor, Cgo Building (Annex.) Nariman Point, Mumbai- M.K.Road, Mumbai-400020 400021 स्थामी रेखा सं./ जीआइआय सं./ Pan/Gir No. : Aaaca 4856 B (अऩीराथी /Appellant) (प्रत्मथी / Respondent) .. याजस्व की ओर से /Revenue By : Shri B.Pruseth ननधाारयती की ओर से /Assessee By : Shri Rakesh Joshi सुनवाई की तायीख / Date Of Hearing : 30/12/2015 घोषणा की तायीख/Date Of Pronouncement /2016 आदेश / O R D E R Per R.C.Sharma (A.M): These Are The Appeals Filed By The Revenue & Cross Objection By The Assessee Against The Order Of Cit(A), Mumbai, For The Assessment Years 2005-06 To 2011-12. 2

For Appellant: Shri Rakesh JoshiFor Respondent: Shri B.Pruseth
Section 132Section 133ASection 143(3)Section 153A

Shivkrupa Distributors (I) P.Ltd, Mumbai vs. ITO WD 13(2)(3), Mumbai

ITA 5621/MUM/2015[2007-08]Status: DisposedITAT Mumbai28 Mar 2016AY 2007-08

Bench: S/Sh.Rajendra & Amit Shuklaआयकर आयकर अपील अपील संसंसंसं./I.T.A./5621/Mum/2015,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2007-08 आयकर आयकर अपील अपील िनधा"रण िनधा"रण वष" वष" Shivkrupa Distributors(I) Pvt. Ltd. Income Tax Officer-13(2)(3) A-102, Rohan Residency, Aayakar Bhavan Mandir Road, Babhai Naka Maharshi Karve Marg Vs. Mumbai-400 020. Borivali (West) Mumbai-400 091. Pan: Aakcs 3782 L (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri B.S. Bist-Sr.A.R. Assessee By: Shri Satish Mody सुनवाई क" तारीख / Date Of Hearing: 28.03.2016 घोषणा क" तारीख / Date Of Pronouncement: 28.03.2016 आयकर अिधिनयम अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) लेखा सद" राजे" के अनुसार Per Rajendra, Am- Challenging The Order Dated 20/10/2015 Of The Cit (A) – 21,Mumbai The Assessee Has Filed The Present Appeal.Assessee-Company,Engaged In The Business Of Trading Of Plywood, Filed Its Return Of Income On 4/10/2007,Declaring Total Income Of Rs. 53,325/-. Initially The Return Was Processed U/S.143 (1) Of The Act.Later On Assessment Was Completed U/S.143(3)R.W.S. 147 Of The Act On 26/ 02/2015,Determining The Income Of The Assessee At Rs. 14.71 Lakhs.

For Appellant: Shri Satish ModyFor Respondent: Shri B.S. Bist-Sr.A.R
Section 132Section 143Section 143(3)Section 254(1)

Jatin P. Ajmera, Mumbai vs. ITO 21(1)(2), Mumbai

In the result, the appeal filed by the assessee is partly allowed

ITA 5569/MUM/2014[2003-04]Status: DisposedITAT Mumbai23 Mar 2016AY 2003-04

Bench: S/Shjogindersingh & Rajendraआयकर अपील सं./Ita/5569/Mum/2014,िनधा"रण िनधा"रण वष" वष" /Assessment Years: 2003-04 िनधा"रण िनधा"रण वष" वष" Shri Jatin P. Ajmera Income Tax Officer-21(1)(2) 36, Nandavan, Ansari Road C-10, 604, Bkc, Bandra Vile Parle (W) Vs. Mumbai-400 051. Mumbai-400 056. Pan:Aabpa 8021 G (अपीलाथ" /Appellant) (""यथ" / Respondent) Revenue By: Shri Ashish Heliwal Assessee By: Shri Rajesh B. Gupte सुनवाई क" तारीख / Date Of Hearing: 23.03.2016 घोषणा क" तारीख / Date Of Pronouncement: 23.03.2016 आयकर अिधिनयम अिधिनयम,1961 क" क" धारा धारा 254(1)केकेकेके अ"तग"त अ"तग"त आदेश आदेश आयकर आयकर आयकर अिधिनयम अिधिनयम क" क" धारा धारा अ"तग"त अ"तग"त आदेश आदेश Order U/S.254(1)Of The Income-Tax Act,1961(Act) अनुसार Per Rajendra A.M.- लेखा सद"य सद"य राजे"" राजे"" केकेकेके अनुसार लेखा लेखा लेखा सद"य सद"य राजे"" राजे"" अनुसार अनुसार Challenging The Order,Dated 19.06.2014,Of Cit(A)-32,Mumbai The Assessee Has Filed Appeal For The Year Under Consideration.The Effective Ground Of Appeal Is About Imposition Of Penalty For Concealing The Particulars Of Income.

For Appellant: Shri Rajesh B. GupteFor Respondent: Shri Ashish Heliwal
Section 132Section 254(1)Section 271(1)(c)