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 ..... Principal Director General or Director General or Principal Director or Director or the Principal Chief Commissioner 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person any such books of account, other documents, money, bullion, jewelry or other valuable article or thing. d. Require any person who is in control of any books of account maintained in the form of electronic record, to afford the authorised officer the necessary facility to inspect such books of account or other documents. e. Seize any such books of account, other documents, money bullion, jewellery or other valuable article or thing found as a result of such search. However, bullion, jewellery or other valuable article or thing, being stock-in-trade of the business, found as a result of such search 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, jewelry or other valuable article or thing belongs to such person. b. That the contents of such books of account and documents are true and c. That the signature and every other part of such books of account and other documents which purport 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. 5. Period of retention of books of accounts and other documents - The books of account or other documents seized under section 132 shall not be retained by the authorized officer for a period exceeding 30 days from the date of the order of assessment or reassessment under section 153A unless the reasons for retaining the same are recorded by him in writing and approval of Chief Commissioner or Commissioner for such retention is obtained. 6. Transfer of Assets Books seized to jurisdiction AO Where the authorized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... To allow free and unhindered ingress into the premises. To see the warrant of authorization and put signature on the same. To identify all receptacles in which assets or books of account and documents are kept and to hand over keys to such receptacles to the authorized officer. To identify and explain the ownership of the assets, books of account and documents found in the premises. To identify every individual in the premises and to explain their relationship to the person being searched. He should `not mislead the personation. If he cheats by pretending to be some other person or knowingly substitutes one person for another, it is an offence punishable under section 416 of the Indian Penal code. Not to allow or encourage the entry of any unauthorized person into the premises. Not to remove any article from its place without notice or knowledge of the authorized officer. If he secrets or destroys any documents with the intention of preventing the same from being produced or used as evidence before the court or public servant, he shall be punishable with imprisonment or fine or both, in accordance with section 204 of the Indian Penal Code. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve an order on the owner or the person who is in immediate possession or control of the books of account, etc., to the effect that such person shall not remove, part with or otherwise deal with it except with the prior permission of the authorized officer. Such authorized officer may take such steps as he deems necessary for proper compliance of his orders. Serving of aforesaid order is not to be deemed as case of seizure [Expln. to section 132(3)]. 11. Time Limit:- According to section 132(8A), the aforesaid order shall not be operative for a period exceeding 60 days from the date of order with effect from June 1, 2002. 12. Examination on oath [Section 132(4)]:- The authorized officer may during the course of search and seizure, examine on oath any person who is found to be in possession or control of any books of account, documents etc. Any statement made by such person during such examination may thereafter be used in evidence in any proceeding under the Act. However, all persons who are found at place of search are not automatically covered by action under section 132. According to Explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccount or other documents, etc., objects to the approval given by the Chief Commissioner, Commissioner, Director-General or Director, he may make an application to the Board stating therein the reasons for the objection and requesting for return of books of account etc. The Board shall pass such order as it thinks fit after providing an opportunity of hearing of the applicant. [ Section 132(10) ] 15. Taking copies of seized documents [Section 132(9)]:- The person from whom the books of account or other documents were seized is permitted to make copies thereof, or take extracts therefrom, in the presence of the authorized officer or any other person empowered by him in this behalf and at such place and time as the authorized officer may provide. 16. Section 132(9A) - Where the authorized officer has no jurisdiction over the person referred to in clause (a) or clause (b) or clause (c) of sub-section (1), the books of account or other documents, or any money, bullion, jewelry or other valuable article or thing (hereafter in this section and in sections 132A and 132B referred to as the assets) sei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nary stage- Where during the course of arguments the petitioner wanted to see the records (documents) maintained by the department including the information and the noting s on the basis of which the authority had arrived at his satisfaction for conducting the search and seizure, the aforesaid documents could not be shown to the petitioners at that stage as their disclosure would hamper the enquiry pending against the petitioner. 22. Partners of firm: - Partners of firm can make copies of books seized during search without being required to give undertaking that books belonged to them. 23 Apply Code of Criminal Procedure : - The provisions of the Code of Criminal Procedure, 1973, relating to searches and seizure shall apply, so far as may be, to searches and seizure under section 132(1) or (1A). [ Section 132(13) ] 24. Board may make rules regarding Search Seizure - Section The Board may make rules in relation to any search or seizure under this section ; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be follo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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