Search and seizure 8
Where the Director General or Director or the Chief Commissioner or Commissioner or any such Deputy Director or Deputy Commissioner as may be empowered in this behalf by the Board, in consequence of information in his possession, has reason to believe that- a any person to whom a summons under sub- section 1 of section 37 1. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 2. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 3. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 4. Substituted for Assistant Director of Inspection by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Substituted for Commissioner, ibid. 6. Substituted for Chief Commissioner or Commissioner therefore by the Finance Act, 1988, w. e. f. 1- 6- 1988. 7. Substituted by the Income- tax Amendment Act, 1965, w. e. f. 12- 3- 1965. The Amendment Act provided for a validating provision for pre- 1965 searches as under 6. Validation of certain searches made.- Any search of a building or place by an Inspecting Assistant Commissioner or Income- tax Officer purported to have been made in pursuance of sub- section 1 of section 132 of the principal Act, i. e., the Income- tax Act, 1961 , before the commencement of this Act, shall be deemed to have been made in accordance with the provisions of that sub- section as amended by this Act as if those provisions were in force on the day the search was made and shall not be called in question before any court of law or any other authority merely on the ground- i that the Inspecting Assistant Commissioner or the Income- tax Officer made such search with the assistance of any other person or ii that no proceeding under the Indian Income- tax Act, 1922 11 of 1922 , or the principal Act, i. e., the Income- tax Act, 1961 , was pending against the person concerned when the search was authorised under the said sub- section. Earlier, section 132 was substituted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 10. Substituted for Director of Inspection by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 11. Substituted for Commissioner, ibid. 12. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 13. Substituted for Deputy Director of Inspection by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 14. Substituted for Inspecting Assistant, ibid. of the Indian Income- tax Act, 1922 11 of 1922 or under subsection 1 of section 131 of this Act, or a notice under sub- section 4 of section 22 of the Indian Income- tax Act, 1922 11 of 1922 , or under sub- section 1 of section 142 of this Act was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such summons or notice, or b any person to whom a summons or notice as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding under the Indian Income- tax Act, 1922 11 of 1922 , or under this Act, or c any person is in possession of any money, bullion, jewellery or other valuable article or thing and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly income or property which has not been, or would not be disclosed for the purposes of the Indian Income- tax Act, 1922 11 of 1922 or this Act hereinafter in this section referred to as the undisclosed income or property , then,- A the Director General or Director or the Chief Commissioner or Commissioner, as the case may be, may authorise any Deputy Director, Deputy Commissioner, Assistant Director, Assistant Commissioner or Income- tax Officer, or B such Deputy Director or Deputy Commissioner, as the case may be, may authorise any Assistant Director, 12 Assistant Commissioner or Income- tax Officer, the officer so authorised in all cases being hereinafter referred to as the authorised officer to- 1. Substituted for which has not been disclosed by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 2. Substituted for he may authorise any Deputy Director of Inspection, Inspecting Assistant Commissioner, Assistant Director of Inspection or Income- tax Officer hereinafter referred to as the authorised officer to- by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 3. Substituted for Director of Inspection by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 4. Substituted for Commissioner, ibid. 5. Substituted for Deputy Director of inspection, ibid. 6. Substituted for Inspecting Assistant, ibid. 7. Substituted for Assistant Director of Inspection, ibid. 8. Substituted for or Income- tax Officer by the Direct Tax Laws Amendment Act, 1987 as amended by the Finance Act, 1988 , w. e. f. 1- 4- 1988. 9. Substituted for Deputy Director of Inspection, ibid. 10. Substituted for Inspecting Assistant, ibid. 11. Substituted for Assistant Director of Inspection by the Direct Tax Laws Amendment Act, 1987 as amended by the Finance Act, 1988 , w. e. f. 1- 4- 1988. 12. Substituted for or Income- tax Officer by the Direct Tax Laws Amendment Act, 1987 as amended by the Finance Act, 1988 , w. e. f. 1- 4- 1988. i enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account, other documents, money, bullion, jewellery or other valuable article or thing are kept ii break open the look of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause i where the keys thereof are not available iia search any person who has got out of, or is about to get into, or is in the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that a such person has secreted about his person any such books of account, other documents, money bullion, jewellery or other valuable article or thing iii seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search iv place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom v make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing Provided that where any building, place, vessel, vehicle or aircraft referred to in clause i is within the are of jurisdiction of any Chief Commissioner or Commissioner, but such Chief Commissioner or Commissioner has no jurisdiction over the person referred to in clause a or clause b or clause c , then notwithstanding anything contained in section 120, it shall be competent for him to exercise the powers under this sub- section in all cases where he has reason to believe that any delay in getting the authorisation for the Chief Commissioner or Commissioner having jurisdiction over such person may be prejudicial to the interest of the revenue Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the owner or the person who is in immediate possession or control on the owner or the person who is in immediate possession or control thereof that he shall not remove part with or otherwise deal with it, except with the previous permission of such authorised officer and such 1. Substituted for building or place by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 4. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Ibid. 6. Substituted for 121 by the Direct Tax Laws Amendment Act 1987 as amended by the Finance Act, 1988 w. e. f. 1- 4- 1988. 7. Substituted for Commissioner by the Direct Tax Laws Amendment Act 1987 w. e. f. 1- 4- 1988. 8. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause iii
a any person to whom a summons under sub- section 1 of section 37 1. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 2. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 3. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 4. Substituted for Assistant Director of Inspection by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Substituted for Commissioner, ibid. 6. Substituted for Chief Commissioner or Commissioner therefore by the Finance Act, 1988, w. e. f. 1- 6- 1988. 7. Substituted by the Income- tax Amendment Act, 1965, w. e. f. 12- 3- 1965. The Amendment Act provided for a validating provision for pre- 1965 searches as under 6. Validation of certain searches made.- Any search of a building or place by an Inspecting Assistant Commissioner or Income- tax Officer purported to have been made in pursuance of sub- section 1 of section 132 of the principal Act, i. e., the Income- tax Act, 1961 , before the commencement of this Act, shall be deemed to have been made in accordance with the provisions of that sub- section as amended by this Act as if those provisions were in force on the day the search was made and shall not be called in question before any court of law or any other authority merely on the ground- i that the Inspecting Assistant Commissioner or the Income- tax Officer made such search with the assistance of any other person or ii that no proceeding under the Indian Income- tax Act, 1922 11 of 1922 , or the principal Act, i. e., the Income- tax Act, 1961 , was pending against the person concerned when the search was authorised under the said sub- section. Earlier, section 132 was substituted by the Finance Act, 1964, w. e. f. 1- 4- 1964. 10. Substituted for Director of Inspection by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 11. Substituted for Commissioner, ibid. 12. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 13. Substituted for Deputy Director of Inspection by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 14. Substituted for Inspecting Assistant, ibid. of the Indian Income- tax Act, 1922 11 of 1922 or under subsection 1 of section 131 of this Act, or a notice under sub- section 4 of section 22 of the Indian Income- tax Act, 1922 11 of 1922 , or under sub- section 1 of section 142 of this Act was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such summons or notice, or
Substituted for such building or place by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975.
b any person to whom a summons or notice as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding under the Indian Income- tax Act, 1922 11 of 1922 , or under this Act, or
c any person is in possession of any money, bullion, jewellery or other valuable article or thing and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly income or property which has not been, or would not be disclosed for the purposes of the Indian Income- tax Act, 1922 11 of 1922 or this Act hereinafter in this section referred to as the undisclosed income or property , then,- A the Director General or Director or the Chief Commissioner or Commissioner, as the case may be, may authorise any Deputy Director, Deputy Commissioner, Assistant Director, Assistant Commissioner or Income- tax Officer, or B such Deputy Director or Deputy Commissioner, as the case may be, may authorise any Assistant Director, 12 Assistant Commissioner or Income- tax Officer, the officer so authorised in all cases being hereinafter referred to as the authorised officer to- 1. Substituted for which has not been disclosed by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 2. Substituted for he may authorise any Deputy Director of Inspection, Inspecting Assistant Commissioner, Assistant Director of Inspection or Income- tax Officer hereinafter referred to as the authorised officer to- by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 3. Substituted for Director of Inspection by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 4. Substituted for Commissioner, ibid. 5. Substituted for Deputy Director of inspection, ibid. 6. Substituted for Inspecting Assistant, ibid. 7. Substituted for Assistant Director of Inspection, ibid. 8. Substituted for or Income- tax Officer by the Direct Tax Laws Amendment Act, 1987 as amended by the Finance Act, 1988 , w. e. f. 1- 4- 1988. 9. Substituted for Deputy Director of Inspection, ibid. 10. Substituted for Inspecting Assistant, ibid. 11. Substituted for Assistant Director of Inspection by the Direct Tax Laws Amendment Act, 1987 as amended by the Finance Act, 1988 , w. e. f. 1- 4- 1988. 12. Substituted for or Income- tax Officer by the Direct Tax Laws Amendment Act, 1987 as amended by the Finance Act, 1988 , w. e. f. 1- 4- 1988. i enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account, other documents, money, bullion, jewellery or other valuable article or thing are kept ii break open the look of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause i where the keys thereof are not available iia search any person who has got out of, or is about to get into, or is in the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that a such person has secreted about his person any such books of account, other documents, money bullion, jewellery or other valuable article or thing iii seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search iv place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom v make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing Provided that where any building, place, vessel, vehicle or aircraft referred to in clause i is within the are of jurisdiction of any Chief Commissioner or Commissioner, but such Chief Commissioner or Commissioner has no jurisdiction over the person referred to in clause a or clause b or clause c , then notwithstanding anything contained in section 120, it shall be competent for him to exercise the powers under this sub- section in all cases where he has reason to believe that any delay in getting the authorisation for the Chief Commissioner or Commissioner having jurisdiction over such person may be prejudicial to the interest of the revenue Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the owner or the person who is in immediate possession or control on the owner or the person who is in immediate possession or control thereof that he shall not remove part with or otherwise deal with it, except with the previous permission of such authorised officer and such 1. Substituted for building or place by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 4. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Ibid. 6. Substituted for 121 by the Direct Tax Laws Amendment Act 1987 as amended by the Finance Act, 1988 w. e. f. 1- 4- 1988. 7. Substituted for Commissioner by the Direct Tax Laws Amendment Act 1987 w. e. f. 1- 4- 1988. 8. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause iii
A the Director General or Director or the Chief Commissioner or Commissioner, as the case may be, may authorise any Deputy Director, Deputy Commissioner, Assistant Director, Assistant Commissioner or Income- tax Officer, or
B such Deputy Director or Deputy Commissioner, as the case may be, may authorise any Assistant Director, 12 Assistant Commissioner or Income- tax Officer, the officer so authorised in all cases being hereinafter referred to as the authorised officer to- 1. Substituted for which has not been disclosed by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 2. Substituted for he may authorise any Deputy Director of Inspection, Inspecting Assistant Commissioner, Assistant Director of Inspection or Income- tax Officer hereinafter referred to as the authorised officer to- by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 3. Substituted for Director of Inspection by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 4. Substituted for Commissioner, ibid. 5. Substituted for Deputy Director of inspection, ibid. 6. Substituted for Inspecting Assistant, ibid. 7. Substituted for Assistant Director of Inspection, ibid. 8. Substituted for or Income- tax Officer by the Direct Tax Laws Amendment Act, 1987 as amended by the Finance Act, 1988 , w. e. f. 1- 4- 1988. 9. Substituted for Deputy Director of Inspection, ibid. 10. Substituted for Inspecting Assistant, ibid. 11. Substituted for Assistant Director of Inspection by the Direct Tax Laws Amendment Act, 1987 as amended by the Finance Act, 1988 , w. e. f. 1- 4- 1988. 12. Substituted for or Income- tax Officer by the Direct Tax Laws Amendment Act, 1987 as amended by the Finance Act, 1988 , w. e. f. 1- 4- 1988. i enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account, other documents, money, bullion, jewellery or other valuable article or thing are kept ii break open the look of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause i where the keys thereof are not available iia search any person who has got out of, or is about to get into, or is in the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that a such person has secreted about his person any such books of account, other documents, money bullion, jewellery or other valuable article or thing iii seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search iv place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom v make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing Provided that where any building, place, vessel, vehicle or aircraft referred to in clause i is within the are of jurisdiction of any Chief Commissioner or Commissioner, but such Chief Commissioner or Commissioner has no jurisdiction over the person referred to in clause a or clause b or clause c , then notwithstanding anything contained in section 120, it shall be competent for him to exercise the powers under this sub- section in all cases where he has reason to believe that any delay in getting the authorisation for the Chief Commissioner or Commissioner having jurisdiction over such person may be prejudicial to the interest of the revenue Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the owner or the person who is in immediate possession or control on the owner or the person who is in immediate possession or control thereof that he shall not remove part with or otherwise deal with it, except with the previous permission of such authorised officer and such 1. Substituted for building or place by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 4. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Ibid. 6. Substituted for 121 by the Direct Tax Laws Amendment Act 1987 as amended by the Finance Act, 1988 w. e. f. 1- 4- 1988. 7. Substituted for Commissioner by the Direct Tax Laws Amendment Act 1987 w. e. f. 1- 4- 1988. 8. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause iii
enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account, other documents, money, bullion, jewellery or other valuable article or thing are kept
break open the look of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause i where the keys thereof are not available
iia search any person who has got out of, or is about to get into, or is in the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that a such person has secreted about his person any such books of account, other documents, money bullion, jewellery or other valuable article or thing
seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search
place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom
make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing Provided that where any building, place, vessel, vehicle or aircraft referred to in clause i is within the are of jurisdiction of any Chief Commissioner or Commissioner, but such Chief Commissioner or Commissioner has no jurisdiction over the person referred to in clause a or clause b or clause c , then notwithstanding anything contained in section 120, it shall be competent for him to exercise the powers under this sub- section in all cases where he has reason to believe that any delay in getting the authorisation for the Chief Commissioner or Commissioner having jurisdiction over such person may be prejudicial to the interest of the revenue Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the owner or the person who is in immediate possession or control on the owner or the person who is in immediate possession or control thereof that he shall not remove part with or otherwise deal with it, except with the previous permission of such authorised officer and such 1. Substituted for building or place by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 4. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 5. Ibid. 6. Substituted for 121 by the Direct Tax Laws Amendment Act 1987 as amended by the Finance Act, 1988 w. e. f. 1- 4- 1988. 7. Substituted for Commissioner by the Direct Tax Laws Amendment Act 1987 w. e. f. 1- 4- 1988. 8. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause iii
1A Where any Chief Commissioner or Commissioner, in consequence of information in his possession, has reason to suspect that any books of account, other documents, money, bullion, jewellery or other valuable article or thing in respect of which an officer has been authorised by the Director General or Director or any other Chief Commissioner or Commissioner or any such Deputy Director or Deputy Commissioner as may be empowered in this behalf by the Board to take action under clauses i to v of sub- section 1 are or is kept in any building, place, vessel, vehicle or aircraft not mentioned in the Commissioner may, notwithstanding any thing contained in section 120, authorise the said officer to take action under any of the clauses aforesaid in respect of such building, place, vessel, vehicle or aircraft.
The authorised officer may requisition the services of any police officer or of any officer of the Central Government or of both, to assist him for all or any of the purposes specified in sub- section 1 or sub- section 1A and it shall be the duty of every such officer to comply with such requisition.
The authorised officer may, where it is not practicable to seize any such books of account other documents money bullion, jewellery or other valuable article or thing, for reasons other than those mentioned in the second provision to sub- section 1 , serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub- section. Explanation.- For the removal of doubts, it is hereby declared that serving of an order as aforesaid under this sub- section shall not be deemed to be seizure of such books of account, other documents, money, bullion, jewellery or other documents, money, bullion, jewellery or other valuable article or thing under clause iii of sub- section 1 .
The authorised officer may, during the course of the search or seizure, examine on oath any person who is fond to be in possession or control of any books of account, documents, money, bullion, jewellery to 1. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. See rule 112 2 c and Form No. 45B. 2. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 3. Substituted for Director of Inspection, ibid. 4. Substituted for Commissioner, ibid. 5. Substituted for Inspecting Assistant, ibid. 6. Substituted for Inspecting Assistant, ibid. 7. Substituted for Commissioner, ibid. 8. Substituted for 121 by the Direct Tax Laws Amendment Act, 1987 as amended by the Finance Act, 1988, w. e. f. 1- 4- 1988. 9. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 10. Inserted by the Finance Act, 1988, w. e. f. 1- 4- 1989. 11. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. other valuable article or thing and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under the Indian Income- tax Act, 1922 11 of 1922 , or under this Act. Explanation.- For the removal of doubts, it is hereby declared that the examination of any person under this sub- section may be not merely in respect of any books of account, other documents or assets found as a result of the search, but also in respect of all matters relevant for the purposes of any investigation connected with any proceeding under the Indian Income- tax Act, 1922 11 of 1922 , or under this Act.
4A Where any books of account, other documents, money, bullion, jewellery or other valuable article or thing are or is found in the possession or control of any person in the course of a search, it may be presumed- i that such books of account, other documents, money, bullion, jewellery or other valuable article or thing belong or belongs to such person ii that the contents of such books of account and other documents are true and iii that the signature and every other part of such books of account and other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person s handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested.
that such books of account, other documents, money, bullion, jewellery or other valuable article or thing belong or belongs to such person
that the contents of such books of account and other documents are true and
that the signature and every other part of such books of account and other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person s handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested.
Where any money, bullion, jewellery or other valuable article or thing hereafter in this section and in sections 132A and 132B referred to as the assets is seized under sub- section 1 or sub- section 1A , as a result of a search initiated or requisition made before the 1st day of July, 1995 the Assessing Officer, after affording a reasonable opportunity to the person concerned of being heard and making such enquiry as may be prescribed, 6 shall within 7 Lone hundred and twenty days of the seizure, make an order, with the previous approval of the Deputy Commissioner,- i estimating the undisclosed income including the income from the undisclosed property in a summary manner to the best of his judgment on the basis of such materials as are available with him 1. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 2. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. See rule 112 2 c and Form No. 45B. 3. Substituted, ibid. 4. Inserted by the Finance Act, 1995, w. e. f. 1- 7- 1995. 5. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 7. Substituted for ninety by the Taxation Laws Amendment Act, 1984, w. e. f. 1- 10- 1984. 8. Substituted for Inspecting Assistant by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. ii calculating the amount of tax on the income so estimated in accordance with the provisions of the Indian Income- tax Act, 1922 11 of 1922 , or this Act iia determining the amount of interest payable and the amount of penalty impossible in accordance with the provisions of the Indian Income- tax Act, 1922 11 of 1922 , or this Act, as if the order had been the order of regular assessment iii specifying the amount that will be required to satisfy any existing liability under this Act and any one or more of the Acts specified in clause a of sub- section 1 of section 230A in respect of which such person is in default or is deemed to be in default, and retain in his custody such assets or part thereof as are in his opinion sufficient to satisfy the aggregate of the amounts referred to in clauses ii , iia and iii and forthwith release the remaining portion, if any, of the assets to the person from whose custody they were seized Provided that if, after taking into account the materials available with him, the Assessing Officer is of the view that it is not possible to ascertain to which particular previous year or years such income or any part thereof relates, he may calculate the tax on such income or part, as the case may be, as if such income or part were the total income chargeable to tax at the rates in force in the financial year in which the assets were seized and may also determine the interest or penalty, if any, payable or impassable accordingly Provided further that where a person has paid or made satisfactory arrangements for payment of all the amounts referred to in clauses ii , iia and iii or any part thereof, the Assessing Officer may, with the previous approval of the Chief Commissioner or Commissioner, release the assets or such part thereof as he may deem fit in the circumstances of the case.
estimating the undisclosed income including the income from the undisclosed property in a summary manner to the best of his judgment on the basis of such materials as are available with him 1. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 2. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. See rule 112 2 c and Form No. 45B. 3. Substituted, ibid. 4. Inserted by the Finance Act, 1995, w. e. f. 1- 7- 1995. 5. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 7. Substituted for ninety by the Taxation Laws Amendment Act, 1984, w. e. f. 1- 10- 1984. 8. Substituted for Inspecting Assistant by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988.
calculating the amount of tax on the income so estimated in accordance with the provisions of the Indian Income- tax Act, 1922 11 of 1922 , or this Act
iia determining the amount of interest payable and the amount of penalty impossible in accordance with the provisions of the Indian Income- tax Act, 1922 11 of 1922 , or this Act, as if the order had been the order of regular assessment
specifying the amount that will be required to satisfy any existing liability under this Act and any one or more of the Acts specified in clause a of sub- section 1 of section 230A in respect of which such person is in default or is deemed to be in default, and retain in his custody such assets or part thereof as are in his opinion sufficient to satisfy the aggregate of the amounts referred to in clauses ii , iia and iii and forthwith release the remaining portion, if any, of the assets to the person from whose custody they were seized Provided that if, after taking into account the materials available with him, the Assessing Officer is of the view that it is not possible to ascertain to which particular previous year or years such income or any part thereof relates, he may calculate the tax on such income or part, as the case may be, as if such income or part were the total income chargeable to tax at the rates in force in the financial year in which the assets were seized and may also determine the interest or penalty, if any, payable or impassable accordingly Provided further that where a person has paid or made satisfactory arrangements for payment of all the amounts referred to in clauses ii , iia and iii or any part thereof, the Assessing Officer may, with the previous approval of the Chief Commissioner or Commissioner, release the assets or such part thereof as he may deem fit in the circumstances of the case.
The assets retained under sub- section 5 may be dealt with in accordance with the provisions of section 132B.
If the Assessing Officer is satisfied that the seized assets or any part thereof were held by such person, for or on behalf of any other person, the Assessing Officer may proceed under sub- section 5 against such other person and all the provisions of this section shall apply accordingly. 1. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 2. Ibid. 3. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 4. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 5. Ibid. 6. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 7. Substituted for Commissioner, ibid. 8. Substituted for section 132A by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 9. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 10. ibid.
The books of account or other documents seized under sub- section 1A shall not be retained by the authorised officer seizure unless the reasons for retaining the same are recorded by him in writing and the approval of the Chief Commissioner or Commissioner for such retention is obtained. Provided that the Chief Commissioner or Commissioner shall not authorise the retention of the books of account and other documents for a period exceeding their days after all the proceedings under the India Income- Tax Act 1922 11 of 1922 or this Act in respect of the years for which the books of account or other documents are relevant are completed.
8A An order under sub- section 3 shall not be in force for a period exceeding sixty days from the date of the order, except where the authorised officer, for reasons to the recorded by him in writing, extends the period of operation of the order beyond sixty days, after obtaining the approval of the Director or, as the case may be, Commissioner or such extension Provided that the Director or, as the case may be, Commissioner shall not approve the extension of the period for any period beyond the expiry of thirty days after the completion of all the proceedings under this Act in respect of the years for which the books of account, other documents, money, bullion, jewellery or other valuable articles or things are relevant.
The person from whose custody any books of account or other documents are seized under sub- section 1 or sub- section IA may make copies thereof, or take extracts there form, in the presence of the authorised officer or any other person empowered by him in this behalf, at such place and time as the authorised officer may appoint in this behalf.
9A Where the authorised officer has no jurisdiction over the person referred to in clause a or clause b or clause c of sub- section 1 , the books of account or other documents or assets seized under that sub- section shall be handed over by the authorised officer to the Assessing Officer having jurisdiction over such person, within a period of fifteen days of such seizure and thereupon the powers exercisable by the authorised officer under sub- section 8 or sub- section 9 shall be exercisable by such Assessing Officer.
If a person legally entitled to the books of account or other 1. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 2. Substitute for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 3. Ibid. 4. Inserted by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1989. 5. Substituted for Commissioner by the Finance No. 2 Act, 1991, w. e. f. 1- 10- 1991 6. Ibid. 7. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 8. Ibid. 9. Substituted for Income- tax by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 10. Ibid. documents seized under sub- section 1 or sub- section IA objects for any reason to the approval given by the Chief Commissioner or Commissioner under sub- section 8 , he may make an application to the Board stating therein the reasons for such objection and requesting for the return of the books of account or other documents.
If any person objects for any reason to an order made under sub- section 5 , he may, within thirty days of the date of such order, make an application to the Chief Commissioner or Commissioner, stating therein the reasons for such objection and requesting for appropriate relief in the matter.
11A Every application referred to in sub- section 11 which is pending immediately, before the 1st day of October, 1984 , before an authority notified under that sub- section as it stood immediately before that day shall stand transferred on that day to the Chief Commissioner or Commissioner may proceed with such application from the stage at which it was on that day
On receipt of the application under sub- section 10 the Board, or on receipt of the application under sub- section 11 the Chief Commissioner or Commissioner, may after giving the applicant an opportunity of being heard, pass such orders as it or he thinks fit.
The Provisions of the Code of Criminal Procedure, 1973 2 of 1974 , relating to searches and seizure shall apply, so for as may be, to searches and seizure under sub- section 1 or sub- section 1A .
The Board may make rules in relation to any search or seizure under this section in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer- i for obtaining ingress into any building, place, vessel, vehicle 1. Inserted by the Taxation Laws Amendment , Act, 1975, w. e. f. 1- 10- 1975. 2. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 3. Substituted for such authority, as may be notified in this behalf by the Central Government in the Official Gazette hereafter in this section referred to as the notified authority by the Taxation Laws Amendment , Act, 1984, w. e. f. 1- 10- 1984. 4. Substituted for Chief Commissioner or Commissioner by the Direct Tax was Amendment , Act, 1987, w. e. f. 1- 4- 1988. 5. Inserted by the Taxation Laws Amendment Act, 1984, w. e. f. 1- 10- 1984. 6. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 7. Ibid. 8. Substituted for the notified authority by the Taxation Laws Amendment Act, 1984, w. e. f. 1- 4- 1984. 9. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1988. 10. Inserted by the Taxation Laws Amendment Act, 1984, w. e. f. 1- 10- 1984. 11. Substituted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 13. Substituted for such building or place by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. or aircraft to be searched where free ingress thereto is not available ii for ensuring safe custody of any books of account or other documents or assets seized. Explanation 1-In computing the period referred to in sub- section 5 for the purposes of that sub- section, any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded. Explanation 2.- In this section, the word proceeding means any proceeding in respect of any year, whether under the Indian Income- tax Act, 1922 11 of 1922 , or this Act, which may be pending on the date on which a search is authorised under this section or which may have been completed on or before such date and includes also all proceedings under this Act which may be commenced after such date in respect of any year
for obtaining ingress into any building, place, vessel, vehicle 1. Inserted by the Taxation Laws Amendment , Act, 1975, w. e. f. 1- 10- 1975. 2. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 3. Substituted for such authority, as may be notified in this behalf by the Central Government in the Official Gazette hereafter in this section referred to as the notified authority by the Taxation Laws Amendment , Act, 1984, w. e. f. 1- 10- 1984. 4. Substituted for Chief Commissioner or Commissioner by the Direct Tax was Amendment , Act, 1987, w. e. f. 1- 4- 1988. 5. Inserted by the Taxation Laws Amendment Act, 1984, w. e. f. 1- 10- 1984. 6. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1- 4- 1988. 7. Ibid. 8. Substituted for the notified authority by the Taxation Laws Amendment Act, 1984, w. e. f. 1- 4- 1984. 9. Substituted for Commissioner by the Direct Tax Laws Amendment Act, 1987, w. e. f. 1988. 10. Inserted by the Taxation Laws Amendment Act, 1984, w. e. f. 1- 10- 1984. 11. Substituted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. 13. Substituted for such building or place by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 10- 1975. or aircraft to be searched where free ingress thereto is not available
for ensuring safe custody of any books of account or other documents or assets seized. Explanation 1-In computing the period referred to in sub- section 5 for the purposes of that sub- section, any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded. Explanation 2.- In this section, the word proceeding means any proceeding in respect of any year, whether under the Indian Income- tax Act, 1922 11 of 1922 , or this Act, which may be pending on the date on which a search is authorised under this section or which may have been completed on or before such date and includes also all proceedings under this Act which may be commenced after such date in respect of any year