TaxTMI 
TaxTMI 
Procedure for Search and Seizure - Section 132
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....rised Officer 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; b. A person to whom a summon or a notice u/s 131 or 142(1) has been ....
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....cer 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 subject to search and the audit firm itself has not been subject to search, on a writ petition by the auditors, it was held the search party does not have access to data of the other clients contained in the laptops of the auditor. [S.R.Batliboi & Co. v Department of Income-tax (Investigation) 2009 (5) TMI 36 - DELHI HIGH COURT] • Deemed/ Constructive Seizure:- W....
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....ord the authorised officer the necessary facility to inspect the books of account or other documents, as required under section 132(1)(iib), fails to afford such facility to the authorised officer, he shall be punishable with simple imprisonment for a term up to six months, or with fine, or with both. [ Amended vide Section 24 of the Finance Act, 2026 ] • Upto 28.02.2026 - If a person who is required to afford the authorised officer the necessary facility to inspect the books of account or other documents, as required under section 132(1)(iib), fails to afford such facility to the authorised officer, he shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine. 4. Presumption in course of Search and Seizure Where any books of account, other documents, money, bullion, jewelry and other valuable article is found in the possession or control of any person in course of a search, it may be presumed- a. That such books of account, other documents, money, bullion, jewelry or other valuable article or thing belongs to such person. b. That the contents of s....
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....the time of reopening of the seals. • Every person who is examined under section 132(4) has a right to ensure that the facts to stated by him have been recorded correctly. • To have a copy of the panchnama together with all the annexures. • To have a copy of any statement that is used against him by the Department. • To have inspection of the seized books of account, etc., or to take extracts therefrom in the presence of any of the authorized officers or any other person empowered by him. • To make an application objecting to the approval given by the Commissioner of Income-tax for retention of books and documents beyond 30 days from the date of assessment under section 153A or 158BC(c). • To make an application under section 132(11) to the Commissioner of Income-tax against an order under section 132(5). • To get back the assets found to be in excess of the liability determined in the order under section 132(5). Duties of the person searched are:- • To allow free and unhindered ingress into the premises. • To see the warrant of authorization and put signatur....
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....r aircraft not mentioned in the authorisation under section 132(1)(i.e. search warrant), • such Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may, notwithstanding anything contained in section 120, authorise the said officer to take action under any of the clauses aforesaid in respect of such building, place, vessel, vehicle or aircraft. 9. Police assistance [Section 132(2)] - The authorized officer may requisition the services of - (i) any police officer or any officer of Central Government or (ii) any person or entity as may be approved by the PCCIT/CCIT/PDGIT/DGIT, as may be prescribed, in this regard to assist him for the purpose of search & seizure. [Amended by FA, 2023] to assist him for all or any of the purposes specified in section 132(1) or (1A) and it shall be the duty of every such officer or person or entity to comply with such requisition. The following point should be noted- • Keeping police officers will not amount to use of excessive force. • Police officers cannot detain a person against his will....
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....:- • Where any books of account, other documents, money, bullion, jewelry and other valuable article is found in possession or control of any person in the course of a search, the following presumptions can be made- • a. Those books of account, other documents money, bullion, jewelry and other valuable article or thing belongs to such person. • b. The contents of such books of account and documents are true. • c. The signature and every other part of such books of account and other documents which purports 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. • Section 292C has been amended with retrospective effect from October 1, 1975 so as to extend these presumptions also to books of account, other documents or assets which have been delivered to the requisitioning officer in accordance with the provision of section 132A. 14. Time-limit for retention of seized books of account, etc. [Sec....
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....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 section 132(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) seized under that sub-section shall be handed over by the authorized officer to the Assessing Officer having jurisdiction over such person within a period of sixty days from the date on which the last of the authorizations for search was executed and thereupon the powers exercisable by the authorised officer under section 132(8) or (9) shall be exercisable by such Assessing Officer. 17. Section 132(9B) - Where, during the course of the search or seizu....