Search And Seizure Under Income Tax Act Pdf

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This power primarily emanates from Section A and enables the tax authority to collect information about the financial transaction of various persons within various classes to help with or that are relevant to any proceedings within the act. It is a much-tempered power as compared to the search and seizure. Under this section, the officers authorised can enter any place within jurisdiction where any business or profession is carried out and inspect books of accounts, place marks of identification on them and even impound in his custody for reasons recorded, make inventory of stock, cash etc and verify values, and record statements that can be relevant in proceedings. A place where no business or profession is carried out can also be surveyed if it contains a book of account or such document relevant and all necessary facilities would, therefore, be extended to such officers in those places as well. Additionally, as per section 5 , in case of ostentatious expenditure suspected in a function or ceremony, the authorities can require the furnishing of such information necessary about such expenditure from persons who would have the knowledge and such information can be used as evidence in tax proceedings.

CONDITIONS PRECEDENT TO SEARCH AND SEIZURE UNDER INCOME TAX ACT, 1961

Search, according to normal dictionary meaning, means to look out, to seek or to find something the presence of which is suspected etc. Seize means to take possession of goods, contrary to the wishes of the owner or to take forcible possession. However, there is no such term as raid anywhere in income tax law. Search operations are exploratory exercises on the basis of information with the income tax department to find hidden income and wealth in cases of tax payers, who have not disclosed their true financial state of affairs in discharge of their tax obligations. Thus, search and seizure is a very powerful weapon in the armory of income tax department to unearth any concealed income or valuables and to check the tendencies of tax evasion thereby mitigating the generation of black money. Who can authorize i. Tax point: Proceeding means any proceeding in respect of any year, which may be pending on the date on which a search is authorized under this section or which may have been completed on or before such date and includes also all proceedings which may be commenced after such date in respect of any year.

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However, no authorization shall be issued by the Additional Director or Additional Commissioner or Joint Director or Joint Commissioner, unless he has been empowered by the Board to do so. Authorisation for search and seizure can take place if the above authority, in consequence of information in his possession, has Reason to Believe that:. Such authorization shall be given in Form 45A. The Officer authorised i. However, the authorised officer shall have no power to seize any bullion, jewellery or other valuable article or thing being stock-in-trade of the business found as a result of search.

Search and Seizure Powers under Income Tax Act

It was since that the provisions of search and seizure had made its first entry into the Income Tax Act, Finance Act, was substitutes of Section Two committees had made certain recommendations on the search and seizure provisions that are. The article below tells us about the search and seizures under the Income Tax Act, Issuing of a search warrant in Form 45 is done by Authorized Officer and the authorization. The authorized officer who is thus duly empowered by the Board has in his possession any information through which he has reason to believe that —. Here thus the authorizing authority, if challenged, is thus required to prove the basis of belief.

However, to mitigate the possibility of its misuse by over-zealous officials, the law has incorporated several safeguards. The author, an eminent advocate with rich experience in the subject, has explained the entire law in a succinct manner. His check list will ensure that the department and the taxpayers are always on the right side of the law Link to download this article in pdf format is at the bottom. The skit play was informative about how a search was conducted, the common mistakes committed by assessees and the like. In the year , the Chamber of Tax Consultants also had a unique programme held at Baidas Hall, where the high income-tax payers of Mumbai were honoured. In this programme also, the play was enacted and was appreciated by all including the Chairman of the CBDT, the Commissioners of Income-tax of Mumbai and the officials of the search team. It is worth considering, subject to permission and precautions, if this play can be posted in the website of the Chamber of Tax Consultants or could be re-enacted during seminars like this.

It was since that the provisions of search and seizure made its first entry into the Income Tax Act. Section was totally substituted by the Finance Act, After section underwent a through overhaul in the year , to committees had made certain recommendations on search and seizure provisions i The Raja Chellaiah Committee and, ii The Kelkar Committee. It is seen that the recommendations affecting the substantive law have been given effect to in respect of majority of such recommendations; the assessee friendly measures recommended by these committees have not been given any serious considerations. Who is the authorized officer to issue order for search and seizure? The Director General or Director or the Chief Commissioner or Commissioner or Joint Commissioner or Joint Director who have been empowered by the Board can authorize any officer subordinate to him not below the rank of Income Tax Officer to conduct search.


Search, according to normal dictionary meaning, means to look out, to seek or to find something the presence of which is suspected etc. Seize means to take possession of goods, contrary to the wishes of the owner or to take forcible possession.


Powers and Procedure for Income Tax Raids (Search and Investigation)

A search is necessary to secure evidence, that may not likely to be made available by issue of summons. The Tax authorities have to resort to search and seizure when there is evidence of undisclosed documents or assets which have not been and would not be disclosed in the ordinary course. Section of the Act envisages unearthing the hidden or undisclosed income or property and bringing it to assessment. Section is a serious invasion into the privacy of a citizen.

Power to search suspected persons entering or leaving India, etc. Power to search suspected persons in certain other cases. Persons to be searched may require to be taken before gazetted officer of customs or magistrate.

Contents at a glance Acknowledgement. What can be seized?. Is penalty mandatory? Can income tax department share information with other authorities also?. Table of contents Acknowledgement.

search and seizure under Indian income tax act 1961
1 Response
  1. Lilian G.

    7. Eg., the Central Excise and State Act, ; various (states) sales tax Acts: Income-tax Act, , Customs.

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