Security of seized/ impounded Books/ documents/ electronic storage devices - Income Tax - F.No. 286/77/2007-IT(Inv.II)

F.No. 286/77/2007-IT(Inv.II) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Room No. 254, North Block, New Delhi Dated : the 13th September, 2007. To All Chief Commissioners of Income Tax (CCA) All Chief Commissioners of Income Tax (Central) All Director General of Income Tax (Investigation) Director General of Income Tax (Intelligence) Sir/Madam, Sub : Security of seized/ impounded Books/ documents/ electronic storage devices Many instances of tampering of seized materials have been reported in recent times and it is a matter of great concern. In order to prevent the tampering of seized materials, the following procedure should be strictly adhered to during the handling of seized materials: (i) All the time of seizure, the Authorized Officer should ensure that all loose pages are properly numbered and sealed, and signatures of witnesses and assessee are taken. The Control Room should check the sealing and page numbering of such loose pages while receiving the seized documents from the Authorized Officer. If there is any discrepancy in numbering of pages or in sealing, it should be brought to the notice of Authorized Officer at that point of time and Authorized Officer takes urgent, steps to rectify the mistake. (ii) The processing Addl. DIT(Inv.) and ADIT(Inv.) shall first of all scrutinize the seized materials including electronic storage devices and ascertain the most incriminating documents as Core Documents . These core documents should be brought to the notice of the DIT (Inv.) concerned and the Addl. DIT (Inv.) shall keep a photocopy of these most incriminating documents for future references. Thereafter, inspection of such incriminating documents will be allowed to the assessee. (iii) The Core Documents as identified in Para (ii) above should invariably be confronted to the assessee by the processing DDIT(Inv.)/ ADIT(Inv.) during the post search investigation and statement of assessee is recorded, if the same has not been confronted during the search and seizure action and mentioned in the statement on oath. (iv) The DDIT(Inv.)/ ADIT(Inv.) will investigate the transactions in these core documents in details, gather all evidences to corroborate the transactions or statements and give a finding on these documents which are to be incorporated in the Appraisal Report. The photocopies of these Core-documents should also be annexed with the Appraisal Report along with the corroborating evidences gathered during search or post search enquires. (v) The DDIT(Inv.)/ADIT(lnv.) should maintain the prescribed register while allowing inspection of seized documents to the assessee and witnesses during the post search investigation and should keep a close watch during inspection of such incriminating documents/PCs/CDs, etc., so that no tampering is done during inspection of such documents. (vi) The DDIT (Inv.)/ADIT(lnv.) should identify these Core documents as mentioned in the Appraisal Report, at the time of handing over of the seized materials to the Assessing Officer, so that special care is taken by the Assessing Officer for security of the documents. At the time of taking over the seized records, the Assessing Officer should check all the seized materials and loose sheets with reference to the Panchnama and Appraisal Report. If any discrepancy is noted, it should be brought on record and the CIT is immediately kept informed about the discrepancy. (vii) Whenever the A.O. hands over seized documents/books of account to another officer, the Officer shall keep the CIT informed in his handover note about the security of seized documents/books of account so that while granting extension to retain the books, the CIT is aware of the security issues relating to the seized materials. The Officer taking over should follow the procedure, as mentioned in Para (vi) above. (viii) Any loss or tampering of seized documents/electronic device is the responsibility of the Officer in whose custody such incident is detected, unless he has pointed out the discrepancy, while taking over such seized documents/CDs/electronic device or otherwise proves that the discrepancy existed prior to take over of such documents. Hence, it is essential that each Officer has to exercise due diligence, while taking over the seized materials and if any discrepancy is noticed, it should be informed at the time of taking over itself and such discrepancies are urgently reported to the CIT/ DIT (Inv.). (ix) On receipt of intimation about any loss or tampering or discrepancy in seized material, the CIT/ DIT (Inv.) should promptly decide regarding further course of action on such occurrence. (x) The procedure as laid down above should be followed also for the security of the impounded documents/ CDs/ electronic device. 2. The aforesaid Guidelines should be brought to the notice of all the Officers of your Region. Yours faithfully, Sd/- (AARSI PRASAD) Under Secretary (Inv.II III) Tel : 23092643