Search And Seizure Under Income Tax Act Pdf

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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.

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.

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.

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

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.

There is no power contained in the Act or the Rules where by the movement of a person against search is ordered can be restricted. By refusing to give permission to the petitioner to attend his work in effect, it amounted to his confinement which is not permissible in law.

Search and seizure is an invasion into the privacy of the individual. Garg v. It is to be acknowledged and appreciated that the department always does lot of preparation before conducting search proceedings. The search and seizure manual of the department contains various checklists to be adhered to by the search parties.

In most of the search cases, department officials do follow the check lists. As per the section , a search and seizure action can be undertaken against any person is in possession of any money, bullion, jewellery or other valuable article or thing and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly income or property which has not been disclosed or would not be disclosed for the purpose of this Act i.

The search and seizure action can also be taken when there is failure to produce books of accounts, documents etc. Ram Kumar Dhanuka v. UOI ITR Raj HC , The court held that, even a non-resident Indian can be subjected to a search under this section if the department has definite information that the person concerned has income earned in India which may be taxable under the Act and which might not have been disclosed or would not be so declared.

Prabhubhai Vastabhai Patel v. Meena ITR Guj. HC , the High Court has discussed the principles for exercise of the power of search and seizure. The Court observed that the person bringing gold must satisfy the Income—tax authorities that he had the means to purchase such gold and that income from sale would be disclosed.

On the facts of that case, the Court held that seizure of gold from the Non-resident Indians was valid though the gold was brought within permissible limit of 5 Kgs as per the extant scheme.

The Court also observed that,. Shah that once the gold was lawfully brought in and proper custom duty was paid, the same should not have been pursued by the income-tax authorities. Buying gold in a foreign country and bringing it in to this country after paying custom duty in foreign exchange does not absolve the person bringing the gold from abroad of his liability to satisfy that the gold was purchased from income lawfully earned by him and the income earned out of sale of such gold would be disclosed for the purpose of the Act.

Section relates to the pre-assessment stage, and it cannot be invoked after an assessment is made to recover the tax due. Choyi v. Mere failure to disclose property purchased is not enough. No power to arrest or restraint in movement of individual.

Such crude attempts to claim credit for imaginary investigational breakthrough should be curbed. Income-tax Officers have no powers of arrest. Arrests are generally resorted to in cases where the detected offence is of a serious nature and the case appears to be fit for criminal prosecution. Persons are generally not arrested when the intention is only to have departmental proceedings. Persons are arrested when there is a gravity of offence, evidence of personal culpability, a strong and prima facie case and a likelihood of person tampering with evidence by remaining at large or absconding.

Nalini Mahajan and others v. If the action is maliciously taken or power under the section is exercised for a collateral purpose, it is liable to be struck down by the court.

If the conditions for the exercise of the power are not satisfied, the proceedings are liable to be quashed. But, where the power is exercised with bonafide intention and in furtherance of the statutory duties of the tax officer, any error of judgement on the part of the officers will not vitiate the exercise of the power.

Restrictions placed by any of the provisions of section , section A or Rule A are reasonable restrictions on the freedom under these Articles. Evidence obtained in search made in contravention of provisions can be used, unless there is an express or necessarily implied prohibition in the Constitution or other law, evidence obtained as result of illegal search or seizure is not liable to be rejected.

Pratp Singh and Anr v. Prakash V. Sanghvi v. Ramesh G. However, warrant issued was held to be valid. The allegation that the Deputy Director trespassed into the house of the assessee and, thereafter, issued the notice to him was not controverted. Therefore, the Deputy Director without the authority of law, having trespassed into the house of the assessee deserved to be prosecuted before a competent criminal court, if so advised.

However, the warrant preceded the search. The assessee had time up to March 15, , to pay the advance tax and, thereafter, time to file his return for the previous year assessment year , but that by itself did not mean that the authorities did not have the jurisdiction to issue a warrant and effect search and seizure under section Before issue of warrant of authorisation, they record the satisfaction and reasoning.

Court cannot sit in appeal over the opinion formed. Existence of materials to be looked into, Court has to examine whether on such material a reasonable man can form opinion. Change in life style of assessee not a material for purpose of formation of opinion. New Ground rules for search and seizure, framed in the year , prescribes the guidelines to be followed in the course of a search and seizure.

It is desired that the said charter may be published in all national languages and when the search and seizure action is carried out, the same must be given to the person in the language known to him and in which he is comfortable. If the department is not equipped with resources to translate the charter in different languages, associations like the Chamber or BCAS may print the copies and may give to the Director General of Income-tax so that he can hand it over to the person in charge of the search party.

Rights of the person searched —. He should not mislead by impersonation. If he cheats by pretending to be some other person or knowingly substitutes one person for other, it is an offence punishable under section of the Indian Penal Code.

If he secrets or destroys any document with the intention of preventing the same from being produced or used as evidence before the Court or public servant, he shall be punished with imprisonment or fine or both, in accordance with section of the Indian Penal Code. He should not allow any third party to either interfere or prompt while his statement is being recorded by the Authorised Officer.

In doing so, he should also keep in mind that If he refuses to answer a question on a subject relevant to the search operation, he shall be punishable with imprisonment or fine or both, under section of the Indian Penal Code. To affix his signature on the recorded statement, inventories and the panchnama. The Search manual also contains the Instruction No.

In the case of a Wealth Tax assessee, gold jewellery and ornaments found in excess of the gross weight declared in the wealth tax return only need be seized. In the case of a person not assessed to wealth tax, gold jewellery and ornaments to the extent of gms per married lady, gms per unmarried lady and gms per male member of the family, need not be seized. CIT v. Ratanlal Vyaparilal Jain ITR Guj HC , the Court held that the approach adopted by the Tribunal considering the extent of jewellery specified under the said circular to be a reasonable quantity cannot be faulted with.

Addition made under section 69 was deleted. Article 21 of the Constitution of India reads as under. Sunil Batra v. The liberalized uniform time limit of days is applicable only to resident individuals and in areas other than export of goods and services. Therefore, the assessee may be advised to comply with the provisions.

Bombay Prohibition Act, Liquor permit is necessary for the purchase, possession, transport and consumption of liquor. Any person above the age of 25 years is eligible for obtaining the liquor permit for preservation and maintenance of his health.

Purchase and drinking without a liquor permit is an offence under Bombay Prohibition Act, According to Delhi Excise Rules, no individual can stock more than 18 litres of wine or beer, nine litres of Indian Made Foreign Liquor IMFL or anything above three litres of country-made liquor at home or for parties.

Delhi Excise Act, , states: "Those found guilty of stocking more than permissible booze may have to pay a fine of up to Rs 1 lakh and serve a jail sentence of up to three years. Assessees who are not complying the provisions may be advised to comply the with provision.

Which court has Jurisdiction? The court held that Genesis for the entire episode of search and seizure and detention having been taken place at Hyderabad airport, cause of action arose at Hyderabad and therefore writ petition was maintainable at Andhra Pradesh High Court.

Seize any such books of account, other documents, money, bullion, jewellery or other article or thing found as a result of such search. Provided that 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.

Sri Pushpa Rajan Sahoo v. Sri PushaRajanSahoo v. Some of the States have provision that when the goods are brought to that particular state by the employees or agents of the assessee company for showing on approval basis, then if the value is beyond certain exemption limit prescribed by the respective VAT law, the same is required to be intimated by filing prescribed form.

Many of the jewellers send their employees to other States to sell the jewellery on approval basis. If the assessee is not complying the VAT provisions, the respective State, though it is stock in trade the respective VAT authorities of the State may take action, which may lead to litigation. It may be desirable to know the VAT law of respective State before sending the high valued goods for approval or sale. If the search is not in accordance with the law, it can be challenged by way of a writ.

The burden to prove so is on the assessee. Before approaching the court, assessee must be very cautious. As per section 13 , the provisions of the Code of Criminal Procedure , relating to search and seizure apply as far as may be applicable, to search and seizure proceedings under the Income—tax Act, By analysing some of the decided cases one may be able to take the decision whether it is worth approaching the court.

Some of the instances where the writ petitions can be considered-. Where there is no rational nexus between the information on record and reason to believe that books of account or other documents would not be produced or the assets representing the income will not or would not be disclosed. Where the search is conducted for collateral purposes or as a matter of policy decision and not as a result of cogent information in relation to a particular assessee.

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

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.

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search and seizure under Indian income tax act 1961

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.

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.

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Он был там только один раз, когда проходил подготовку. Этот враждебный мир заполняли рабочие мостки, фреоновые трубки и пропасть глубиной 136 футов, на дне которой располагались генераторы питания ТРАНСТЕКСТА… Чатрукьяну страшно не хотелось погружаться в этот мир, да и вставать на пути Стратмора было далеко не безопасно, но долг есть долг. Завтра они скажут мне спасибо, - подумал он, так и не решив, правильно ли поступает. Набрав полные легкие воздуха, Чатрукьян открыл металлический шкафчик старшего сотрудника лаборатории систем безопасности. На полке с компьютерными деталями, спрятанными за накопителем носителей информации, лежала кружка выпускника Стэнфордского университета и тестер. Не коснувшись краев, он вытащил из нее ключ Медеко. - Поразительно, - пробурчал он, - что сотрудникам лаборатории систем безопасности ничего об этом не известно.

Мир опять замер. Три… три… три… 238 минус 235. Разница равна трем. Он медленно потянул к себе микрофон. В то же самое мгновение Сьюзан опять бросила взгляд на руку Танкадо, на этот раз посмотрев не на кольцо… не на гравировку на золоте, а на… его пальцы. Три пальца.

Search and Seizure Powers under Income Tax Act

Это было одним из крупнейших достижений Стратмора.

Пятидесятишестилетний коммандер Стратмор, заместитель оперативного директора АНБ, был для нее почти как отец. Именно он принимал ее на работу, именно он сделал АНБ для нее родным домом. Когда десять лет назад Сьюзан поступила в агентство, Стратмор возглавлял Отдел развития криптографии, являвшийся тренировочной площадкой для новых криптографов, криптографов мужского пола. Хотя Стратмор терпеть не мог выделять кого-нибудь из подчиненных, он с особым вниманием относился к своей единственной сотруднице. Когда его обвиняли в фаворитизме, он в ответ говорил чистую правду: Сьюзан Флетчер - один из самых способных новых сотрудников, которых он принял на работу.

В этом их слабость - вы можете путем скрещивания отправить их в небытие, если, конечно, знаете, что делаете. Увы, у этой программы такого тщеславия нет, у нее нет инстинкта продолжения рода. Она бесхитростна и целеустремленна, и когда достигнет своей цели, то скорее всего совершит цифровое самоубийство.  - Джабба театральным жестом указал на громадный экран.

 - Почему вы считаете, будто Танкадо не знал, что на него совершено покушение. Смит откашлялся. - Халохот ликвидировал его с помощью НТП - непроникающей травматической пули. Это резиновая капсула, которая при попадании растворяется. Все тихо и чисто.

 Потому что Стратмор обошел систему Сквозь строй? - Фонтейн опустил глаза на компьютерную распечатку.

 - Почему он не звонит. Вода из горячей постепенно превратилась в теплую и, наконец, холодную. Она уже собиралась вылезать, как вдруг ожил радиотелефон. Сьюзан быстро встала и, расплескивая воду, потянулась к трубке, лежавшей на краю раковины.

Вопрос национальной безопасности. Консьерж покачал головой: - Невозможно. Быть может, вы оставите… - Всего на одну минуту. Она в столовой.

Профессор вертел кольцо в пальцах и изучал надпись. - Читайте медленно и точно! - приказал Джабба.  - Одна неточность, и все мы погибли. Фонтейн сурово взглянул на .

Это какая-то глупая шутка. Он не находил слов. - Ты знаешь ее фамилию. Двухцветный задумался и развел руками. - Каким рейсом она летит.

Но Сьюзан физически не могла примириться с тем, что увидела. Да, Грег Хейл противный и наглый, но он же не предатель. Зная, чем грозит агентству Цифровая крепость, не мог же он участвовать в заговоре по ее созданию.

Затем, с еще мокрыми волосами, угощал поверженного соперника орешками и соком. Как у всех молодых профессоров, университетское жалованье Дэвида было довольно скромным. Время от времени, когда надо было продлить членство в теннисном клубе или перетянуть старую фирменную ракетку, он подрабатывал переводами для правительственных учреждений в Вашингтоне и его окрестностях. В связи с одной из таких работ он и познакомился со Сьюзан. В то прохладное осеннее утро у него был перерыв в занятиях, и после ежедневной утренней пробежки он вернулся в свою трехкомнатную университетскую квартиру.

Дэвид в опасности… или того хуже. Быть может, уже поздно. Я сожалею о Дэвиде Беккере.

ТОЛЬКО В ЦИФРОВОЙ ФОРМЕ - Черт его дери! - взорвался Джабба.  - Только цифровой. Нам нужно число. Он нас надул. Это кольцо - обман.

Беккер почувствовал комок в горле. - Когда она уезжает. Двухцветный словно будто только что очнулся. - Когда? - Он заржал.

Сосредоточившись, Сьюзан перезагрузила Следопыта и нажала клавишу ВВОД. Терминал пискнул. СЛЕДОПЫТ ЗАПУЩЕН Сьюзан знала, что пройдет несколько часов, прежде чем Следопыт вернется. Она проклинала Хейла, недоумевая, каким образом ему удалось заполучить ее персональный код и с чего это вдруг его заинтересовал ее Следопыт.

2 Response
  1. Noelle C.

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

  2. Aubert F.

    Search, according to normal dictionary meaning, means to look out, to seek or to find something the presence of which is suspected etc.

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