TMI Blog1982 (9) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... k. In the search, some jewellery and cash were seized. The ITO by his order dated November 20, 1981, passed under s. 132(5) of the Act directed that a sum of Rs. 43,650 be retained and the remaining cash and jewellery be released in favour of the petitioner. The amount retained was considered sufficient to cover the tax liability of the petitioner and the penalties leviable under ss. 271(1)(c) and 273. The petitioner has preferred detailed objection before the Commissioner under s. 132(l 1) of the Act which is still pending. The Commissioner purporting to act under s. 263 of the Act issued notice to the petitioner calling upon her to show cause as to why the aforesaid order under s. 132(5) be not modified as in his opinion the order was p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower of revision under s. 263 embraces within its ambit also the order passed in assessment proceedings. It is not correct to say that the revisional power under s. 263 is confined to an order passed in assessment proceedings only. Orders accepting the registration of a firm and recording the partition of a Hindu undivided family are independent orders and do not form a part of the assessment orders. Such orders would be open to revision under s 263 if they are prejudicial to the interests of the Revenue. Sub-section (5) of s. 132 empowers the ITO to, (1) estimate the undisclosed income, including the income from the undisclosed property, in summary manner to the best of his judgment on the basis of such materials as are available with hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceedings no occasion arises to protect the interests of the Revenue. The order passed under s. 132(5), though provisional in nature, may itself be prejudicial to the interests of the Revenue. If the ITO on an erroneous view releases all or most of the assets seized during a search, that order may be prejudicial to the interests of the Revenue and in such a situation the Commissioner would be competent to exercise his power under s. 263 of the Act. Section 132 is intended to achieve two limited objectives : (1) to get hold of evidence bearing on the tax liability of a person which the said person is seeking to withhold from the assessing authority, and (2) to get hold of assets representing income believed to be undisclosed income and apply ..... X X X X Extracts X X X X X X X X Extracts X X X X
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