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TMI BlogProcedure for Search and Seizure - Section 132X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner or Chief Commissioner or Principal Commissioner or Commissioner Additional Director or Additional Commissioner or Joint Director, Joint Commissioner, Assistant Director or Deputy Director, Assistant Commissioner or Deputy Commissioner or Income-tax Officer Additional Director or Additional Commissioner or Joint Director, or Joint Commissioner Assistant Director or Deputy Director, Assistant Commissioner or Deputy Commissioner or Income-tax Officer. 2. When search can be authorized [ Section 132(1) ] If the above authority on the basis of information in his possession, have reasons to believe that: a. Any person to whom a summon or notice was issued to produce books of account or other documents u/s 131 or 142(1), has wilfully omitted or failed to produce such books of account or other documents by such summons or notice; b. A person to whom a summon or a notice u/s 131 or 142(1) has been or might be issued, will not or would not, produce any books of account or other documents which will be useful or relevant to any proceedings; c. A person is in possession of any articles or things, including money bullion or jewellery or any other valuable article and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not be seized but the authorised officer shall make a note or inventory of such stock-in-trade of the business. f. place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom; g. make a note or an inventory of any such money, bullion, jewelry or other valuable article or thing. Notes: - * Where the client of the auditor was subject to search and the audit firm itself has not been subject to search, on a writ petition by the auditors, it was held the search party does not have access to data of the other clients contained in the laptops of the auditor. [S.R.Batliboi & Co. v Department of Income-tax (Investigation) 2009 (5) TMI 36 - DELHI HIGH COURT] * Deemed/ Constructive Seizure:- Where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorized Officer may serve an order on the owner or the person who is in immediate possession thereof that he shall not remove, part with or otherwise deal with it except with the previ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner or Commissioner for such retention is obtained. 6. Transfer of Assets & Books seized to jurisdiction AO - Where the authorized officer has no jurisdiction over the person searched by him, the books of account or assets seized shall be handed over by the authorized officer to the Assessing Officer having jurisdiction over such person within a period of 60 days from the date on which search was completed. 7. Rights and duties of the person searched:- The person searched has the following rights- * To see the warrant of authorization duly signed and sealed by the issuing authority. * To verify the identity of each member of the search party. * To make personal search of all members of the search party before the start of the search and on conclusion of the search. * To insist on personal search of ladies being taken only by lady, with strict regard to decency. * To have at least two respectable and independent residents of the locality as witnesses. * A lady occupying an apartment being searched has a right to withdraw before the search party enters, if, according to custom, she does not appear in public. * To call a medical practitioner in case of emer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enal Code. * To answer all queries truthfully and to the best of his knowledge. He should not allow any third party to either interfere or prompt while his statement is being recorded by the authorized officer. In doing so, he should keep in mind that- Penalty - i. Failure to comply with section 132(1)(iib) ii. Failure to comply with section 153A. 8. If books of accounts, etc. are kept in building not specified in the search warrant [Section 132(1A)] - Where a search for any books of account or other documents or assets has been authorized by Director-General, Director, chief Commissioner or Commissioner, Joint Director or Joint Commissioner (i.e., the authorized officer), and the Chief Commissioner or Commissioner has reasons to suspect that such books of account, other documents, money, bullion, jewelry or other valuable article or things of the assessee are kept in any building, place, vessel, vehicle or aircraft not specified in the search warrant, then such Chief Commissioner or Commissioner may authorized the authorized officer to search such other building, place, vessel, vehicle or aircraft. 9. Police assistance [Section 132(2)] - The authorized officer may re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings under the Act. 13. Presumptions [section 132(4A)]:- Where any books of account, other documents, money, bullion, jewelry and other valuable article is found in possession or control of any person in the course of a search, the following presumptions can be made- a. Those books of account, other documents money, bullion, jewelry and other valuable article or thing belongs to such person. b. The contents of such books of account and documents are true. c. The signature and every other part of such books of account and other documents which purports to be in the handwriting of any particular person are in that person's handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped, executed or attested by the person by whom it purports to have been so executed or attested. Section 292C has been amended with retrospective effect from October 1, 1975 so as to extend these presumptions also to books of account, other documents or assets which have been delivered to the requisitioning officer in accordance with the provision of section 132A. 14. Time-limit for retention of seized books of account, etc. [Section 132(8)]:- * When ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised officer, for reasons to be recorded in writing, is satisfied that for the purpose of protecting the interest of revenue, it is necessary so to do, he may with the previous approval of the Principal Director General or Director General or the Principal Director or Director, by order in writing, attach provisionally any property belonging to the assessee, and for the said purpose, the provisions of the Second Schedule shall, mutatis mutandis, apply. 18. Section 132(9C) - Every provisional attachment made u/s 132(9B) shall cease to have effect after the expiry of a period of six months from the date of the order referred to in section 132(9B). 19. Section 132(9D) - The authorised officer may, during the course of the search or seizure or within a period of 60 days from the date on which the last of the authorisations for search was executed, make a reference to (i) a Valuation Officer referred to in section 142A, or (ii) any other person or entity or any valuer registered by or under any law for the time being in force, as may be approved by the PCCIT/CCIT/PDGIT/DGIT, as may be prescribed, in this regard, [Amended by FA, 2023] who shall estimate the fair market value of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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