PRACTICAL ISSUES - SEARCH, SEIZURE & SURVEY

Similar documents
Historical & Legislative Background provisions governing initiation of. By: CA Dilip M Shah

Search Assessments u/s 153A and Section 153C etc Latest Judicial Developments. Chartered Accountant New Delhi

Income Tax Authorities

Direct Tax (Article) Evidentiary value of statement recorded in assessment, search and survey proceedings under the Income Tax Act, 1961

IN THE INCOME TAX APPELLATE TRIBUNAL SPECIAL BENCH : JODHPUR

Penalty u/s. 271(1)(c): Initiation, Satisfaction & Levy The Unwritten Mandates

Settlement of Tax Cases

Search Assessments u/s 153A and Section 153C etc Latest Judicial Developments. Chartered Accountant New Delhi

SEARCH, SEIZURE AND ASSESSMENT PROCEEDINGS UNDER INCOME TAX ACT, By Advocate Paras Savla. WIRC, Colaba, Mumbai on 2 nd March 2013

THE HIGH COURT OF DELHI AT NEW DELHI

PROSECUTION UNDER INCOME TAX ACT - P.K. PRADEEP KUMAR INCOME TAX OFFICER

income tax procedure starts with the Assessee filing Return of income. The first stage after the filing of Return of income is the Assessement of the

Direct Tax (Article) Power of ITAT to stay the penalty proceedings where quantum proceeding is pending before it

$~21 to 34 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision: W.P.(C) 4304/2018 & CM APPL.16759/2018

Dos and Donts during the Assessment Proceedings

THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX BILL, 2015

21 ASSESSMENT PROCEDURE

CA Final Paper 7 Direct Tax Laws Chapter 24 CA.Aseem Chawla / CA. Anuj Mathur

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI + CRL.M.C. 2467/2015

By Dhaval Shah, B.Com(FM), ACA.

'IN THE INCOME TAX APPELLATE TRIBUNAL "B" BENCH : BANGALORE

Evidence & Proceedings under Income Tax Act DIRECT TAXES REFRESHER COURSE 2013

26 Offences and Prosecution

APPEAL BEFORE CIT (Appeals)

*IN THE HIGH COURT OF DELHI AT NEW DELHI. % Date of decision:11 th December, Through: Mr Rajat Aneja, Advocate. Versus AND. CM (M)No.

DOCTRINE OF RES JUDICATA, BINDING PRECEDENT AND MERGER

Dos and Donts during the Assessment Proceedings

IN THE SUPREME COURT OF INDIA CRIMINAL APPELLATE JURISDICTION. Criminal Appeal No.625 of 2018 [Arising out of SLP (CRL.) No.

THE KERALA TAX ON LUXURIES RULES, 1976

HONOURABLE MR.JUSTICE D.A.MEHTA HONOURABLE MS.JUSTICE H.N.DEVANI. KANUBHAI M PATEL HUF - Petitioner(s) Versus

Inspection, Search, Seizure and Arrest

24 Appeals and Revision

INSPECTION, SEARCH, SEIZURE AND ARREST

Detailed case : S. P. Bharucha, N. Santosh Hegde and Y. K. Sabharwal JJ.

CA BHADRESH DOSHI. Seminar on Post Assessment Issues under IT Act by WIRC 15 th Jan 2011

Inspection, Search, Seizure and Arrest

IN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : INCOME TAX ACT W.P.(C) 7933/2010. Date of Decision : 16th February, 2012.

C h a p t e r - XV I n s p e c t i o n, S e a r c h, S e i z u r e a n d A r r e s t

IN THE HIGH COURT OF DELHI: NEW DELHI SUBJECT : CODE OF CIVIL PROCEDURE Judgment pronounced on: I.A. No.13124/2011 in CS (OS) No.

Central Excise Duty on free Samples

2 the return was not fatal and therefore, did not attract the consequences laid down in Section 185 of the Income Tax Act. Aggrieved by the order of t

Central Administrative Tribunal - Delhi

GST. By CA. B S Mylar. FCA. C A B.S.Mylar B.Com. FCA

IN THE HIGH COURT OF DELHI AT NEW DELHI. WP(C) No.3114/2007. Reserved on : November 19, Date of decision : December 03, 2007.

Sri J. Prakash vs Smt. M.T. Kamalamma And Anr. on 12 October, 2007

IN THE SUPREME COURT OF INDIA CRIMINAL APPELLATE JURISDICTION CRIMINAL APPEAL NOS OF State of Tamil Nadu.Appellant.

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.102 OF 2016

IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(C) No of 2014

IN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : ARBITRATION AND CONCILIATION ACT, 1996 ARB.P. 63/2012 Date of Decision : December 06, 2012

CUSTOM EXCIE & SERVICE TAX APPELLATE TRIBUNAL. CA. PIYUSH.S. CHHAJED.FCA., DISA Chartered Accountant

THE DISPUTED ELECTIONS (PRIME MINISTER AND SPEAKER) ACT, 1977 ARRANGEMENT OF SECTIONS

THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

WRIT PETITION NO OF Dr. Madhav Vishwanath Dawalbhakta (Decd) through LRs. Dr. Nitin M. Dawalbhakta & Ors. Versus

$~11 * IN THE HIGH COURT OF DELHI AT NEW DELHI. + WRIT PETITION (CIVIL) No. 3964/2017 INDO ARYA CENTRAL TRANSPORT COMMISSIONER OF INCOME TAX (TDS),

M.A. No. 70/Chd/2018 in Stay Application No. l8/chd/2017 (in ITA No. 1560/Chd/2017) Assessment Year:

Meaning of the term leave under section 10(5) of the I.T. Act, 1961, relating to LTA / LTC

Mr. Madhur Agarwal, Advocate

Provided that no residential accommodation (not being a shop-cumresidence) shall be entered into or searched unless such officer is specially

Law of Evidence and its Importance under the Income Tax Act, 1961 & Fundamental concepts regarding Reassessment

THE PAYMENT OF GRATUITY ACT, 1972 ARRANGEMENT OF SECTIONS

Offences and Penalties

GAZETTE OF INDIA EXTRA-ORDINARY. PART (II) OF SECTION 3, SUB-SECTION (ii) PUBLISHED BY AUTHORITY SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION

THE SECURITIES LAWS (AMENDMENT) BILL, 2013

PROHIBITION OF BENAMI PROPERTY TRANSACTION ACT, 1988

IN THE HIGH COURT OF DELHI AT NEW DELHI SUBJECT : INDIAN EVIDENCE ACT, 1872 C.R.P. 589/1998. Date of Decision: 6th March, 2009

+* THE HIGH COURT OF DELHI AT NEW DELHI. % Judgment Reserved on : Judgment Delivered on: versus. WP(C) No of 2008.

CHAPTER 18:01 SOCIETIES

Versus. The Presiding Officer, Labour Court No.VI,... Respondents. Delhi and Anr. Through Ms.Amita Gupta, Advocate

* IN THE HIGH COURT OF DELHI AT NEW DELHI. % Date of decision: 20 th May, Versus

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION. CIVIL APPEAL NO OF 2015 (Arising out of SLP (C) No of 2014) versus

APPENDIX 38 C FOREIGN TRADE (REGULATION) RULES, 1993

1. These rules may be called the Central Sales Tax (Tamil Nadu) Rules, 1957.

NOTIFICATION Shimla -2, the 21st January, 2006

THE FUGITIVE ECONOMIC OFFENDERS BILL, 2018

11 Companies Incorporated Outside India

$~49 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Order: July 24, W.P.(C) 7444/2018, C.M. APPL. No /2018

* IN THE HIGH COURT OF DELHI AT NEW DELHI. versus. Through: 1. For the reasons stated in the application, delay of 61 days in refiling

THE AUTHORITY FOR ADVANCE RULINGS ON CENTRAL TAXES BILL, 2007

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION. CIVIL APPEAL No(s) OF 2019 (Arising out of SLP (C ) No.

Offences and Penalties

FORUM FOR JUDICIAL ACCOUNTABILITY

211 (2014) DELHI LAW TIMES 7B (CN) DELHI HIGH COURT Manmohan Singh, J. GURUCHARAN SINGH WASON Petitioner versus PRAFUL PRAKASH RAMANAND Respondent

CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW J U D G M E N T

ICSI-CCGRT. ICSI-CCGRT GEETA SAAR A Brief of Premier on Company Law. Registered Office of a company (Sec 12)

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION. CIVIL APPEAL No.11249/2018 [Arising out of SLP (CIVIL) No.

Lakshmi & Anr vs Rayyammal & Ors on 8 April, 2009

* IN THE HIGH COURT OF DELHI AT NEW DELHI. + Writ Petition (Civil) No. 2174/2011

*IN THE HIGH COURT OF DELHI AT NEW DELHI. % Date of decision:1 st December, 2009 M/S ANSAL PROPERTIES & INFRASTRUCTURE. Versus

[TO BE PUBLISHED IN GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION WRIT PETITION (L)NO OF 2014

THE ADMINISTRATORS-GENERAL ACT, 1963

CHAPTER 9:02 GAMBLING PREVENTION ACT ARRANGEMENT OF SECTIONS

LEGAL MAXIM: AUDI ALTERAM PARTEM & NEMO JUDEX IN RE SUA: DOCTRINE OF NATURAL JUSTICE:

THE COMPETITION (AMENDMENT) BILL, 2007

Note on abolition of capitation fee in private institutions And taking action against such institutions

THE PASSPORTS ACT, 1967 ARRANGEMENT OF SECTIONS

UNIT II-SEARCHES, SEIZURE AND ARREST 1. POWER TO SEARCH SUSPECTED PERSONS ENTERING OR LEAVING INDIA, ETC. [SECTION 100]

Downloaded From

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI REHABILITATION MINISTRY EMPLOYEES CO-OPERATIVE. versus

! Through: Mr. Sushil Kumar, Sr. Adv. with Mr. Rajesh Batra, Mr. Aditya Kumar and Mr. Jitender Anand, Advs. Versus

Transcription:

PRACTICAL ISSUES - SEARCH, SEIZURE & SURVEY Prashanth G S, FCA Chartered Accountant Bangalore Introduction Search - Stages in search proceedings Stage 1 : Authorization of search Stage 2 : Actual conduct of Search Proceedings Stage 3 : Post Search Proceedings/ Assessment Practical aspects of search Penalty in search cases Survey Proceedings 2 1

Introduction Search: Means to look for or seek out Mechanism for gathering evidence regarding evasion of tax and for unearthing black money Invading the personal/ office premises of any person by surprise 3 Introduction Three Stages of Search Under Section 132 Pre-search enquiries and authorization; Actual conduct of search; Post Search - Assessment of income 4 2

Pre-Search Enquiries/Information Pre-Search Enquiries/Information : Summons u/s 131(1A) Annual Information u/s 285BA read with Rule 114E Private Sources/ Informers Pre- search investigations 5 Pre-Search Enquiries/Information Contd Authorization for search can be issued only: by a Competent Authority; and after satisfying prerequisite conditions prescribed under section 132 6 3

Board Guidelines Instruction No. 7/2003 dated 30.07.2003: Searches shall be authorized only by DGIT (Inv.) and search to be carried out in cases where: substantial unaccounted income/ assets involved expected concealment is in excess of Rs. 1 crore Tax payers who are professionals of excellence should not be searched without there being compelling reasons 7 Pre-requisite Conditions to Authorize Search Competent Authority in consequence of information in his possession, reason to believe that either of the three conditions contained in clauses (a), (b) and(c) of section 132 are satisfied, which are: Where any person was summoned u/s 131 or was issued notice u/s 142(1) to produce books or other documents and has failed to do so (refers to facts which actually exist) Where any person will not, if summoned or notice issued, comply with the same (refers to belief likely to take place) Where any person is in possession of any money, bullion, jewellery or any other valuable article or thing which he has either failed to disclose or is not likely to be disclosed to the Income Tax Authorities (refers to undisclosed moveable property) 8 4

Information Information: Must be something more than just rumour or a gossip or a hunch; Some valid, definite information and not any imaginary or invalid information Must be authentic 9 Information Reason To Believe has been analysed in various decisions to mean:- Belief of a reasonable man formed in good faith and must not be mere pretence There must be application of mind by the competent authority Nexus between information/ material or reason and belief formed 10 5

Information : Mere knowledge about huge investment in house or expenditure on lavish marriage/functions [refer L.R. Gupta: 194 ITR 32(Del.) SLP dismissed CA 891/ 93 dated 10.8.98] Report about roaring practice or charging high rates from customers and about standard of living [refer Dr. Nand Lal Tahiliani: 170 ITR 592 (All.) SLP dismissed 172 ITR 627 and 260 ITR 67 (Cal.)] 11 Information Mere information from CBI/Police that assessee possess money [refer Ajit Jain: 260 ITR 80 (SC)] Post search material cannot justify search [refer Dr. Anita Sahai : 266 ITR 597 (All.), Smt. Kavita Aggarwal vs. DIT (E) :264 ITR 472 (All.)] 12 6

Search Warrant Primary contents of a Search Warrant Refer Rule 112 - Form No. 45 Specifies Person Specifies Premises Identifies the condition on the basis of which search is authorized Identifies the officers authorized to conduct search 13 Validity of search To challenge the validity To file writ petition challenging the validity of search proceedings. Appellate Authorities have power to adjudicate validity of the search proceedings C. Ramaiah Reddy V. ACIT: 339 ITR 210 Kar High Court 14 7

Validity of search Once search takes place, whether legal or illegal, evidence collected can be used - [refer Pooran Mal vs. DI : 93 ITR 505 (SC)] Search is assessee specific and not premises specific. Nenmal Shankarlal Parmer V. CIT: 195 ITR 582 (Kar.) Mrs. Dhiraj Suri: 98 ITD 187(Del.) Dr. Mrs. Surjit Tosaria V. JCIT: 92 TTJ 338 (Del.) 15 Powers of Authorized Officer To enter and search the place (section 132(1)(i)) To break open locks where key not available (section 132(1)(ii)); Search any person who is to get in or to go out (section 132(1)(iia)) To direct facility to inspect books or other documents (section 132(1)(iib)) 16 8

Powers - Contd Make inventory and/or place marks of identification on books of account/ documents or make extracts or copies therefrom(section 132(1)(iv) & (v)) Seek police assistance (section 132 (2)) Record statement under sub-section (4) Seize any such books of accounts, documents, money, bullion, etc (section 132(1)(iii)) Pass a `restraint order or prohibitory order 17 Taxpayer s Charter issued by CBDT [208 ITR (St.) 5] To see the warrant duly signed and stamped To verify the identity of each member search party To make personal search of all members of search party To insist on personal search of ladies by ladies only To have two witnesses (refer Rule 112 (6) and (7)) Allow children to go to schools To seek medical help, if required. 18 9

Taxpayer s Charter Contd To have the facility of having meals at the normal time. To have copy of Panchnama together with annexures To have copy of any statement used against the person. To allow free and unhindered entry to the search party To see the warrant and sign the same To identify and explain ownership of assets or books of account/ documents To identify every individual in the searched premises 19 Taxpayer s Charter Contd To answer queries to the best of his knowledge To affix his signatures on statements, inventories and Panchnama To ensure that peace is maintained through the duration of search Not to remove any article from its place without prior knowledge of the authorized officer 20 10

Seizure `Seizure means forcibly taking over possession from the owner or person who has possession and who is unwilling to part with possession [refer Tarsem Kumar: 161 ITR 505 (SC)]; Only an `undisclosed asset could be subjected to seizure [section 132(iii)] Refer: L.R. Gupta: 194 ITR 32 (Del.) Om Prakash Jindal: 104 ITR 389 (P&H) 21 Seizure Contd Indiscriminate search and seizure of third party books / assets not permissible:- H.L. Sibal vs. CIT : 101 ITR 112 (P&H) S.R. Batliboi & Co. vs. DIT (Inv.): 224 CTR 369 (Del.) 22 11

Modes of Seizure: Actual Seizure `Deemed Seizure /`Restraint order (second proviso to section 132(1)) Due to physical attributes, possession of any valuable article or thing not possible or practicable; then order served on the person in possession of such article or thing; and person directed not to part/ deal with the article or thing Such action is termed as deemed seizure 23 Prohibitory Order - Section 132(3) Where its not practicable to seize any books of accounts/ others documents, money, bullion, jewellery, other valuable article or thing order served on person in possession of above; and such person is directed not to part or otherwise deal with same Does not amount to deemed seizure Search concludes when prohibitory order is lifted and Panchnama is prepared therefor 24 12

Prohibitory Order Contd An asset which is already known cannot be subject to search and seizure and consequently, cannot be subject of an order under section 132(3) of the Act: Ramesh Chander vs. CIT: 93 ITR 244 (P&H) Moti Lal: 80 ITR 418 (All) Sardar Praduman Singh Vs. UOI and Ors: 166 ITR 115 (Del.) No order can be passed u/s 132(3) where authorized officer is in doubt whether the asset is disclosed or undisclosed - Om Prakash Jindal Vs. UOI: 104 ITR 389 (P&H) 25 Certain Assets Cannot be Seized Stock-in-trade of the business cannot be seized [Section 132(1) - 3rd Proviso] Following Jewellery cannot be seized [Instruction no. 1916 dated 11.05.94] Jewellery declared in Wealth Tax ; 500 gms. per married lady ; 250 gms. per unmarried lady ; 100 gms. per male member 26 13

Statement During Search Section 132 (4) Authorized officer may examine any person on oath during course of search If such person is found to be in possession of books of accounts, documents, money, etc.; Statement can be used as an evidence in any proceedings Such examination may be in respect of all matters relevant for investigation connected with any proceedings under the Act No obligation to make a surrender (Vide F.No. 286/ 2/ 2003 dated 10 th March, 2003 ) 27 Sec 132(4) contd Post Recording: Copy of statement not made available by the Department Record the contents/ statement for future reference To ensure correct statement has been recorded before signing the same 28 14

Conclusion of Search Right to obtain a copy of Panchnama Right to obtain photocopies of the various books of accounts and records seized by the search party Must ensure that it correctly states: Assessee subjected to search Premises searched Documents/ Books found and seized Jewellery/ Ornaments, etc 29 Post-Search Assessment Change in the procedure for assessment of search cases `Block Assessment under Chapter XIV-B applicable for searches after 1.7.95 and up to 31.05.2003 Section 153A to section 153C applicable for searches on or after 1.06.2003 Block Assessment Introduced by the Finance Act, 1995 for searches on or after 1.07.95 30 15

Section 153A Overrides sections 139, 147, 148, 149, 151and 153 AO shall issue notice to the person searched to file ROI for 6 assessment years preceding the year of search ROI filed is treated as return u/s 139 AO to assess/ reassess total income for six assessment years Assessment/ reassessment in relation to any assessment year :- falling within the period of such six assessment years pending on the date of initiation of search shall `abate 31 Abate - Meaning Black s Law Dictionary defines the term as under: To throw down, to beat down, destroy, quash. To do away with or nullify or lessen or diminish. To bring entirely down or demolish, to put an end, to do away with, to nullify, to make void. 32 16

Abate Meaning To diminish or take away, to prostrate, to beat down remove or destroy; also to let down or cheapen the price in buying or selling. In civil law, an abatement of a suit is a complete termination of it. To abate a suit is to put an end to its existence. - Srinibas Jena vs. Janardan Jena, AIR 1981 Ori 1. 33 Section 153C Assessment of income of any other person Overrides sections 139, 147, 148, 149, 151and 153 Where AO of the person searched is satisfied that any money, bullion, jewellery or other valuable article or thing or books of accounts or documents seized belong to some other person 34 17

Section 153C AO shall hand over the aforesaid assets/ documents to AO of such other person; AO of such other person shall proceed u/s 153A Reference to date of search u/s153a construed as reference to date of receipt of aforesaid assets/ documents 35 Pre-requisite - Section 153C Seizure of books of account or documents or undisclosed asset belonging to assessee is sine qua non for assumption of valid jurisdiction under section 153C Vijaybhai N. Chandrani V. ACIT: 231 CTR 474 (Guj.) P. Srinivas Naik vs. ACIT: 117 ITD 20 (Bang.) 36 18

Pre - Requisite - Section 153C As per Black s Law Dictionary the term belong means as under: Belong to; appertain to; to be the property of; to be a member of; to be appropriate; to be own Reference to the name of the assessee or casual connection in the seized documents does not mean that documents belong to the assessee [refer Vijaybhai Chandrani (supra) and P. Srinivas Naik (supra)] 37 Sections 153A to 153C Contd Assessment to be completed with prior approval of Joint Commissioner [section 153D] Abated proceedings revive if assessment u/s 153A is annulled [section 153A(2)] Penalty governed by section 271AAA and 271(1)(c) 38 19

Sections 153A to 153C - Issues It is no longer required that addition/ disallowance must be made only on the basis of any evidence found as a result of search as held in the following cases: Harvey Heart Hospital Ltd. v. ACIT: (2010) 36 DTR (Chennai) (Tri.) 201 Shyam Lata Kaushik v. ACIT: 114 TTJ 940 (Del) Shivnath Rai Harnarain (India) Ltd v. DCIT: 117 TTJ 480 (Del) Contra: LMJ International Limited vs. DCIT: (2008) 22 SOT 315 Anil Kumar Bhatia v. ACIT: 1 ITR (Trib) 484 -Del 39 Presumption regarding documents found during search Section 292C presumes that if books of accounts, documents or any other valuable assets is found from the possession or control of a person during the course of search or survey then: such books or assets are presumed to belong to that person; contents of such books or documents are presumed to be correct; signature and contents purportedly in handwriting of a particular person are presumed to be so; in any proceedings under the I.T. Act. 40 20

Presumption Regarding Documents Found During Search Comments/ Observations: Presumption is rebuttable presumption [refer CIT V. SMS Investment Corporation: 207 ITR 364 (Raj.)] and onus to dislodge same shall be on the person from whose possession such seized documents/valuables are found. 41 Section 132B Application of seized assets Seized assets to be dealt with as under Any Existing liability Liability determined on completion of the post search assessment Where any disclosed asset has been seized: Application must be filed within 30 days of seizure for release explaining the same 42 21

Section 132B Contd Application of seized assets On such application such asset is to be released within 180 days of execution of last authorization Any assets or proceeds thereof which remain after meeting the aforesaid liabilities shall be handed over to the person from whose custody the assets were seized. 43 Retraction of Statement Assessee entitled to retract from admission and explain the incorrect statement made: Pullangode Rubber Produce Co. Ltd V. State of Kerala: 91 ITR 18 (SC) K.T. M. S. Mohd. V. UOI: 197 ITR 196 (SC) Evidence brought by confession, if successfully retracted, must be corroborated by independent and cogent evidences: Vinod Solanki: 233 ELT 157 (SC) K.T. M. S. Mohd. V. UOI: 197 ITR 196 (SC) 44 22

Conditions For Claiming Immunity [Section 271AAA (2)] Undisclosed income is admitted in statement u/s 132(4); and Manner of deriving undisclosed income specified and substantiated; and Tax along with interest is paid 45 Survey Section 133A Survey can be conducted by jurisdictional Commissioner Director Joint Commissioner Joint Director Deputy Director Assistant Director Assessing Officer Tax Recovery Officer Inspector (only for inspection of books) After approval of Joint Director/ Commissioner 46 23

Survey Section 133A contd.. Survey can be conducted Only at business premises; and Any other place where assessee states that books/ cash/ stock/ valuable article or thing of business are or is kept Survey team can enter Business premises : During business hours Any other place : After sunrise and before sunset 47 On Survey initiation Section of Search 133A Contd - the Survey team can Inspect books/ other documents, place marks of identification and/ or make copies thereof; Impound, after recording reasons, such books/ other documents for 10 days (excl. holidays) [period can be extended by Chief Commissioner/ Director General]; Verify and make inventory of cash/ stock/ other valuable article/thing [cannot remove them]; Record statement of any person (not on oath) 48 24

Impound Meaning Black s Law Dictionary defines `impound as under: To place (something, such as a car or other personal property) in the custody of the police or the court, often with the understanding that it will be returned intact at the end of the proceeding. To take and retain possession of (something, such as a forged document to be produced as evidence) in preparation for a criminal prosecution 49 Others Time limitation for exit of the Survey Team N.K. Mohnot: 215 ITR 275 (Mad.) Evidentiary value for statement recorded S. Kader Khan Sons: 300 ITR 157 (Mad.) Paul Mathews & Sons: 263 ITR 101 (Ker.) Ashok Manilal Thakkar vs. ACIT : 279 ITR 143 (AT) (Ahd.)] 50 25

Others Survey of premises of lawyer/ CA not permissible unless the client whose premises is surveyed states that his books of accounts/ documents and records are kept in office of lawyer/ CA - U.K. Mahapatra & Co.: 308 ITR 133 (Ori.) Bar on removal of cash, stock or other valuable thing/ article under section 133A(4) is absolute - Salecha: 256 ITR 730 (Raj.) CIT V. Mool Chand 51 Thank You prashanth@gspconsulting.co.in +91-98454-80269 52 26