Section 132B of the Income Tax Act
Income-tax Act, 2025: s.250
Section 132B of the Income-tax Act, 1961 corresponds to section 250 (Application of seized or requisitioned assets) of the Income-tax Act, 2025.
Read section 250 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 132B is CIT v. Mahendra C. Shah (299 ITR 305), cited in 80 of the 100 judgments on BharatTax that turn on this section.
Leading authorities on Section 132B
During a search operation, the authorized officer recording a statement under Section 132(4) must fully explain Explanation 5 to Section 271(1)(c) to the assessee, particularly the requirement to specify the manner of earning undisclosed income, for a valid claim of penalty immunity. Income not declared or advance tax not paid proportionately before the search date is treated as undisclosed, thereby disallowing advance tax benefits.
An addition to income cannot be made based on a seized document that is 'dumb' or 'deaf and dumb' without any further evidence to prove the assessee actually incurred the expenditure or made the payment mentioned.
Income-tax additions cannot be made solely based on uncorroborated notes found on loose sheets of paper.
Addition to income cannot be made solely on the basis of uncorroborated notations found on loose papers.
