55[Search
and seizure.
56132. 57(1) Where the 58[Director General or Director] or the 59[Chief Commissioner or Commissioner] 60[or Additional Director or Additional
Commissioner] 61[or Joint Director
or Joint Commissioner] in consequence of information62 in his possession, has reason to
believe62 that—
(a) any person to whom a summons under sub-section
(1) of section 37 of the Indian Income-tax Act,
1922 (11 of 1922), or under sub-section (1) of section
131 of this Act, or a notice under sub-section (4) of section 22 of the Indian Income-tax Act, 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 thing63 and such money, bullion, jewellery or
other valuable article or thing represents either wholly or partly income or
property 64[which has not been, or
would not be, disclosed63] 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),
65[then,—
(A) the 66[Director
General or Director] or the 67[Chief
Commissioner or Commissioner], as the case may be, may authorise any 68[Additional Director or Additional
Commissioner or] 69[Joint
Director], 70[Joint Commissioner],
71[Assistant Director 72[or Deputy Director]], 73[Assistant Commissioner 72[or Deputy Commissioner] or
Income-tax Officer], or
(B) such 68[Additional
Director or Additional Commissioner or] 69[Joint
Director], or 70[Joint
Commissioner], as the case may be, may authorise any 71[Assistant Director 72[or Deputy Director]], 73[Assistant Commissioner 72[or Deputy Commissioner] or
Income-tax Officer],
(the officer so authorised in all cases being
hereinafter referred to as the authorised officer) to—]
(i) enter and search74 any 75[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 lock 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;
76[(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 such person has secreted
about his person any such books of account, other documents, money, bullion,
jewellery or other valuable article or thing;]
77[(iib)
require any person who is found
to be in possession or control of any books of account or other documents
maintained in the form of electronic record as defined in clause (t) of
sub-section (1) of section 2 of the Information
Technology Act, 2000 (21 of 2000)78,
to afford the authorised officer the necessary facility to inspect such books
of account or other documents;]
(iii) seize79
any such79 books of account, other
documents, money, bullion, jewellery or other valuable article or thing found
as a result of such search:
80[Provided
that bullion, jewellery or other valuable article or thing, being
stock-in-trade of the business, found as a result of such search shall not be
seized but the authorised officer shall make a note or inventory of such
stock-in-trade of the business;]
(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 :
81[Provided that where any
building, place, vessel, vehicle or aircraft referred to in clause (i) is
within the area of jurisdiction of any 82[Chief
Commissioner or Commissioner], but such 82[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 83[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 from
the 84[Chief Commissioner or
Commissioner] having jurisdiction over such person may be prejudicial to the
interests of the revenue :]
85[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 thereof that he shall not remove, part with or
otherwise deal with it, except with the previous permission of such authorised
officer and such action of the authorised officer shall be deemed to be seizure
of such valuable article or thing under clause (iii):]
86[Provided
also that nothing contained in the second proviso shall apply in case of
any valuable article or thing, being stock-in-trade of the business:]
87[Provided
also that no authorisation shall be issued by the Additional Director or
Additional Commissioner or Joint Director or Joint Commissioner on or after the
1st day of October, 2009 unless he has been empowered by the Board to do so87a.]
88[(1A) Where any 89[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 90[Director General or Director] or any
other 91[Chief Commissioner or
Commissioner] or 92[Additional
Director or Additional Commissioner] 93[or
Joint Director or Joint Commissioner] 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 authorisation under sub-section (1), such 94[Chief Commissioner or Commissioner]
may, notwithstanding anything contained in section 95[120],
authorise the said officer to take action under any of the clauses aforesaid in
respect of such building, place, vessel, vehicle or aircraft.]
(2) 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) 96[or
sub-section (1A)] and it shall be the duty of every such officer to comply with
such requisition.
(3) The
authorised officer may, where it is not practicable97 to seize any such books of account, other
documents, money, bullion, jewellery or other valuable article or thing, 98[for reasons other than those mentioned
in the second proviso to sub-section (1),] serve an order on the owner or the
person who is in immediate possession97
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.
99[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 valuable article
or thing under clause (iii) of sub-section (1).]
(4) The
authorised officer may, during the course of the search or seizure, examine on
oath any person who is found to be in possession or control of any books of
account, documents, money, bullion, jewellery or 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.
1[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.]
2[(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.]
(5) 3[***]
(6) 4[***]
(7) 5[***]
(8) The
books of account or other documents seized under sub-section (1) 6[or sub-section (1A)] shall not be
retained by the authorised officer for a period exceeding 7[thirty days from the date of the order of
assessment under 8[section 153A or] clause (c) of section 158BC] unless the reasons for retaining the
same are recorded by him in writing and the approval of the 9[Chief Commissioner, Commissioner,
Director General or Director] for such retention is obtained :
Provided that
the 9[Chief Commissioner,
Commissioner, Director General or Director] shall not authorise the retention
of the books of account and other documents for a period exceeding thirty days
after all the proceedings under the Indian 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.
10[(8A) An
order under sub-section (3) shall not be in force for a period exceeding sixty
days from the date of the order.]
(9) The
person from whose custody any books of account or other documents are seized
under sub-section (1) 11[or
sub-section (1A)] may make copies thereof, or take extracts therefrom, 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.
12[(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 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) 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 sixty
days from the date on which the last of the authorisations for search was
executed and thereupon the powers exercisable by the authorised officer under
sub-section (8) or sub-section (9) shall be exercisable by such Assessing
Officer.]
(10) If
a person legally entitled to the books of account or other documents seized
under sub-section (1) 13[or
sub-section (1A)] objects for any reason to the approval given by the 14[Chief Commissioner, Commissioner, Director
General or Director] 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 15[and the Board may, after giving the
applicant an opportunity of being heard, pass such orders as it thinks fit].
(11) 16[***]
(11A) 17[***]
(12) 18[***]
19[(13) The provisions of the Code
of Criminal Procedure, 1973 (2 of 1974), relating to searches and seizure shall
apply, so far as may be, to searches and seizure under sub-section (1) or
sub-section (1A).]
20(14) 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 21[any building, place, vessel, vehicle 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.
22[Explanation
1.—For the purposes of sub-section (9A), “execution of an authorisation
for search” shall have the same meaning as assigned to it in Explanation
2 to section 158BE.]
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.]
