Power of Survey- Section 133A - Income Tax - Ready Reckoner - Income Tax

Power of Survey- Section 133A 1. An Assessing Officer or his duly authorized inspector, Deputy Commissioner or Assistant Director has the power to enter: Within the limits of the area assigned to him or Occupied by any person in respect of whom he exercises jurisdiction or any place in respect of which he is authorised for the purposes of this section by such income-tax authority, who is assigned the area within which such place is situated or who exercises jurisdiction in respect of any person occupying such place. [ Section 133A(1) ] 2. Power to enter any business premises or any place, at which activity of charitable purpose is carried on - For the purpose of survey under this section an income-tax authority may enter any building or place at which a business or profession or an activity for charitable purpose is carried on, and require any proprietor, trustee, employee or any other person who may at that time and place be attending in any manner to, or helping in, the carrying on of such business or profession or such activity for charitable purpose - To afford him, the necessary facility to inspect such books of account or other documents, as he may require and which may be available at such place To afford him the necessary facility to check or verify the cash, stock or other valuable articles, or thing which may be found therein, and To furnish such information as he may require as to any matter which may be useful for, or relevant to, any proceeding under this Act. [ Section 133A(1) ] Survey of any other place - For the purposes of section 133A(1), a place where a business or profession or activity for charitable purpose is carried on shall also include any other place, in which the person carrying on the business or profession or activity for charitable purpose states that any of his books of account or other documents or any part of his cash or stock or other valuable articles his business or profession or activity for charitable purpose are or is kept. [ Explanation to section 133A(1) ] 3. Survey for verifying the compliance of provisions of TDS/TCS - For the purpose of verifying that tax has been deducted or collected at source, enter, any office, or any other place where business or profession is carried on, where books of account or documents are kept and require the deductor or the collector or any other person who may at that time and place be attending in any manner to such work - to afford him the necessary facility to inspect such books of account or other documents as he may require and which may be available at such place to furnish such information as he may require in relation to such matter. [ Section 133A(2A) ] 4. An income-tax authority acting under section 133A shall, on no account, remove or cause to be removed from the place wherein he has entered, any cash, stock or other valuable article or thing. [ Section 133A(4) ] 5. Time limit for entering into business premises - An income-tax authority may enter any place of business or profession referred to above only during the hours at which such place is open for conduct of business or profession and in case of any other place, only after sunrise and before sunset. Note:- The entry into the business premises must be during the business hours but survey operation can be continued after business hours. [N.K. Mohnot v DCIT 1997 (9) TMI 21 - MADRAS HIGH COURT] 6. Other Powers of income-tax authority acting under section 133A may - (i) Place marks of identification on the books of account or other documents inspected by him and make copies therefrom, (ia) Impound and retain in his custody and books of account or other documents inspected by him; Exception of impound of books or books of account (a) impound any books of account or other documents except after recording his reasons for so doing; or (b) retain in his custody any such books of account or other documents for a period exceeding fifteen days (exclusive of holidays) without obtaining the approval of the Principal Chief Commissioner or the Chief Commissioner or the Principal Director General or the Director General or the Principal Commissioner or the Commissioner or the Principal Director or the Director therefor, as the case may be. (ii) Make an inventory of any cash, stock or other valuable article or thing checked or verified by him, (iii) Record the statement of any person which may be useful for, or relevant to, any proceeding under this Act. No action under section 133A(3)(ia) or (ii) shall be taken by an income-tax authority acting under section 133A(2A). [ Section 133A(3) ] 7. Survey in connection with any function - Where, having regard to the nature and scale of expenditure incurred by an assessee, in connection with any function, ceremony or event, the income-tax authority is of the opinion that it is necessary or expedient so to do, he may, at any time after such function, ceremony or event, require the assessee by whom such expenditure has been incurred or any person who, in the opinion of the income-tax authority, is likely to possess information as respects the expenditure incurred, to furnish such information as he may require as to any matter which may be useful for, or relevant to, any proceeding under this Act and may have the statements of the assessee or any other person recorded and any statement so recorded may thereafter be used in evidence in any proceeding under this Act. [ Section 133A(5) ] 8. If a person under this section is required to afford facility to the income-tax authority to inspect books of account or other documents or to check or verify any cash, stock or other valuable article or thing or to furnish any information or to have his statement recorded either refuses or evades to do so, the income-tax authority shall have all the powers under section 131(1) for enforcing compliance with the requirement made. No action shall be taken by an income-tax authority without the approval of the Principal Director General or the Director General or the Principal Chief Commissioner or the Chief Commissioner under section 133A. [ Section 133A(6) ] 9. Additions cannot be made solely on the basis of statement recorded during survey in absence of any corroborative evidence and supporting material in case wherein it has been retracted. [ACIT v Prabhu Dayal Kanojia 2010 (11) TMI 500 - ITAT, JAIPUR] 10. Confessions made during survey is not conclusive and can be retracted. [ CIT v Dhingra Metal Works 2010 (10) TMI 29 - DELHI HIGH COURT ] income-tax authority means- (i) a Principal Commissioner or Commissioner, a Principal Director or Director, a Joint Commissioner or Joint Director, an Assistant Director or a Deputy Director or an Assessing Officer, or a Tax Recovery Officer; and (ii) includes an Inspector of Income-tax, for the purposes of section 133A(1)(i), section 133A(3)(i) and section 133A(5), who is subordinate to the Principal Director General or the Director General or the Principal Chief Commissioner or the Chief Commissioner, as may be specified by the Board. Proceeding means any proceeding under this Act in respect of any year which may be pending on the date on which the powers under this section are exercised 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.