Scope of the order u/s.132(1)(c)(iii) and of order u/s.132(3). - Income Tax - 221/CBDT

INSTRUCTION NO. 221/CBDT Dated: September 25, 1970 Section(s) Referred: 132(1)(c) ,132(1)(c)(iii) ,132(3) Statute: Income - Tax Act, 1961 In a recent case which came to the notice of the board the legality of action u/s.132(1)(c)(iii) and of an order u/s.132(3) served on a customs central excise officer was challenged by the said officer on the ground that the person contemplated in the said section does not include the government or its officer. The propriety and desirability of such action has also been questioned on the ground that it causes embarrassment to the officers of the customs and central excise department. The issues have been examined and the board is advised that orders u/s.132(1)(c)(iii) and 132(3) are legal in cases where the documents or valuables are to be seized from sister departments or the said departments have to be restrained u/s.132(3) from parting with the documents, money, bullion or other valuables. 2. It is however necessary that in cases where action under the aforesaid sections is taken the CIT/ITO should write a polite official letter to the officer of the sister department explaining the circumstances which necessitate the issue of orders u/s.132(1)(c)(iii) and 132(3) and the relevant provisions which authorise such action.