Guidelines regarding conduct of survey under Section 133 A of Income Tax Act, 1961

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....Income Tax Act, 1961 1. The Central Board of Direct Taxes ("Board") had issued "Survey Manual" in 2007 containing detailed guidelines on survey under Section 133A of Income Tax Act, 1961. The Directorate of Income Tax (Vigilance) has recently conducted a 'system study' as a measure of preventive vigilance in pursuance of frequent receipt of complaints with regard to conduct of survey, The findings of the 'system study' indicate that the legal provisions contained in the statute and guidelines relating to survey under Section 133A issued by the Board are not being followed properly by the field formations. The Chairman, CBDT, has directed that proper guidelines based on the findings of the study should be issued. 2. Survey is an intrus....

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....dl. Director in-charge of the Investigation Unit) to the jurisdictional Commissioner and the Range Addl./Joint Commissioner under intimation to the Director of Income Tax (Investigation) within 48 hours of the conclusion of the survey". It is reiterated that such "Preliminary Survey Report" must be submitted in all cases invariably within the time prescribed in the Survey Manual. (iii) Para - 65 and 66 of Survey Manual, 2007, give details of post-survey investigation procedure. Para - 67 requires monthly survey report by DGsIT/ CCsIT in prescribed form to be submitted to the Board. The form has been recently revised to capture wider details for carrying out a meaningful analysis. The modified form has been circulated to all Pr. CCs....

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.... This will enable the DGIT/Pr. CCIT send qualitative report to the Board in a better manner. (v) Para - 58 of Survey Manual, 2007, provides, "Detailed inventory should be prepared of all the books/documents and valuables found at the premises". It has been reported that in many cases it is not done. In view of the above, it is reiterated that the above may be scrupulously followed. (vi) The importance of collecting evidences in support of statement or findings of survey has been emphasized in, inter-alia, Para - 55 and 56 of Survey Manual, 2007. Para - 24 of Survey Manual, 2007, states, "The Income Tax authority authorizing or conducting a survey should be clear about the objective of the survey, i.e., the type of informa....