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Power of Survey- Section 133A - Income Tax - Ready Reckoner - Income TaxExtract 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 Occupied by any person in respect of whom he exercises jurisdiction 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- a. 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 b. 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 c. 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. 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 - a. 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 b. to furnish such information as he may require in relation to such matter 4. Survey of any other place - For the purposes of this section, 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/ 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. 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 - An income-tax authority acting under this section may,- i Place marks of identification on the books of account or other documents inspected by him and make copies therefrom, ii Impound and retain in his custody and books of account or other documents inspected by him. iii Make an inventory of any cash, stock or other valuable article or thing checked or verified by him, iv Record the statement of any person which may be useful for, or relevant to, any proceeding under this Act. 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 or any other person, to furnish such information as he may require and may have the statements of the assessee or any other person recorded. 8. If a person does not co-operate in the survey then the Income-tax authority shall issue summons u/s 131 for enforcing compliance with the requirement made. Non-compliance with summon u/s 131(1) result in authorization of search and seizure on the assessee. 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 wheerin 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 ]
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