Empowering Deputy Directors of Inspection and Inspecting Assistant Commissioners to authorize searches u/s 132(1) of the Income-tax Act and 37A(1) of the Wealth-tax Act - Income Tax - D.O.F.No. 414/65/79- IT (Inv.)

D.O.F.No.414/65/79- IT (Inv.) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated the 6th November, 1979 Sub : Empowering Deputy Directors of Inspection and Inspecting Assistant Commissioners to authorize searches u/s 132(1) of the Income-tax Act and 37A(1) of the Wealth-tax Act. Enclosed herewith are copies of Board s orders F.No. 414/65/79-IT(Inv.) dated 6th November, 1979, under sections 132(1) of the Income-tax Act and 37A(1) of the Wealth tax Act, which empower Deputy Directors of Inspection posted in the Directorate of Inspection (Investigation), Deputy Directors of Inspection posted in the Intelligence Wings and all Inspecting Assistant Commissioners of Income-tax to authorise searches under Sections 132(1) of the I.T. Act and 37A(1) of the Wealth-tax Act. 2. It would be observed from the orders that the authorities mentioned therein have been given full powers to authorize search and seizures. The Board, however, is very anxious that these powers should not be misused. The Board desire that at present these powers should be exercised by these officers in a strictly limited manner confined to consequential searches only. These officers should after according reasons for doing so, authorize consequential searches wherever such action is considered necessary on the basis of information that may be brought to their knowledge during the course of searches already being carried out under authorisations issued by the Director of Inspection (Investigation) /Commissioners of Income-tax. 3. A close watch over searches authorized by the DDs.I and IACs is absolutely essential. They should, therefore, be required to send preliminary search reports to you with copies to the D.I. (Inv.) and the Board in the proforma currently being used to report searches to the D.I. (Inv.)/ Board. A. critical appraisal of the searches authorized by these officers, during the current financial year and their effectiveness should be made and a report should be sent to the Board by 30.4.1980. 4. I would once again like to emphasise that the powers now given to the DDs.I and IACs should be exercised in a very limited manner, i.e., for consequential searches only. You are requested to bring this to the notice of the DDs.IT and IACs working in your charge and confirm to me officially that suitable instructions have been issued to them. Yours Sincerely, Sd/- (T.Y.C. RAO) MEMBER