Interpretation of Sec.132(9). - Income Tax - 1404/CBDT

INSTRUCTION NO. 1404/CBDT Dated: July 10, 1981 The board had recently an occasion to examine the scope of sec.132(9) of the I.T.Act. This section provides that the person from whose custody books of accounts or other documents are seized under sub-section '1 or '1A may make copies thereof or take extracts therefrom. The point for consideration is whether an employee from whose premises books and documents etc. belonging to an assessee have been seized is entitled to make copies thereof or take extracts therefrom when the same is objected to by the assessee i.e. the owner of the books and documents etc. 2. The matter involves interpretation of section 132(9) of the I.T.Act. The Act does not define the word custody used in the said sub-section. It however implies control of a person with such actual or constructive possession as per requirements of law or duty enjoined by it. In other the person having the custody of books and documents etc,. should have been entitled to retain the same as he has to meet out the case our charge sought to be made out against him. The deciding factor is the person to whom the documents etc are related and against whom they are to be used. 3. The board is therefore of the view that the assessing officer would be perfectly within his rights to decline permission to an employee to make copies thereof or take extracts herefrom when the same is objected to by the assessee. In such situations it is the assessee alone who will be entitled to the benefit of sec.132(9) of the I.T.Act. 4. The above may please be brought to the notice of all officers working in your charge.