Approval for extended retention of books of accounts seized u/s132. - Income Tax - 1726/CBDT

INSTRUCTION NO. 1726/CBDT Dated: August 22, 1986 Section 132(8) provides that the books of accounts or other documents seized during the course of search and seizure operations shall not be retained by the authorised officer for a period exceeding 180 days from the date of the seizure unless the reasons for retaining the same are recognised in writing and the approval of the Commissioner for such retention is obtained. 2. In the case of M/s Survir Enterprises, in the Change of C.I.T., Delhi (Central), during the course of a search conducted on 14th May, 1981 some books of accounts were seized. Orders were passed allowing retention of the books upto 30th June, 1982. Thereafter, there was no order upto 5th October, 1983. Even if there was such an order, it was not communicated to the assessee. From 5th October, 1983 another order was passed extending the retention of the books upto 10th September, 1984. On assessee's writ petition, the Delhi High Court held that the period between 30th June, 1982 was invalid. The order passed on 5th October, 1983 cannot validate further retention. 3. The Board had in Member's D.O.F.No. 286/50/80-IT(Inv.) dated 18th June, 1980 down five steps to ensure timely issue of orders for extended retention of seized books of accounts. A copy of this D.O. is enclosed for ready reference. The Board desires that these instruction should be scrupulously followed. 4. Timely approval for extended retention of books of accounts seized u/s 132 should be obtained. The order of approval and the reasons recorded for extended retention should also be expeditiously communicated to the assessee as directed by the Supreme Court in C.I.T. Vs. Oriental Rubber Works (1984) 145-ITR-477.