Comparison of section 489 "Presumption as to assets, books of account, etc., in certain cases." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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.... books of account and related material found in searches u/s 247 and custody u/s 248. The principal change between the Bill and the Act is the explicit inclusion in the Act of "any information in electronic form" and "computer system" (with cross-references to definitions in section 261). The provisions affect taxpayers, investigators/prosecution and custodial officers; the effective date or enactment date is Not stated in the document. Background & Scope Statutory hooks: the provision is located under the chapter/heading "OFFENCES AND PROSECUTION" and operates in relation to searches made u/s 247 and custody/delivery u/s 248. The Act version expressly cross-refers to definitions in section 261 (sub-sections 261(e) and 261(g)), thereby im....

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.... the provision applies to (a) items found during search u/s 247 and (b) items taken into custody u/s 248 and subsequently delivered to the requisitioning officer. The operative trigger is tendering by the prosecution in evidence for an offence under the Income-tax Act. Interpretation The text signals legislative intent to extend the evidentiary/presumptive machinery of section 247(7) beyond physical assets and paper records to specified digital material and whole computer systems by explicit inclusion and cross-reference to section 261 definitions. The phrase "so far as may be, apply" indicates a measure of adaptation: the provisions of section 247(7) are to be applied to such items to the extent practicable, accommodating differences bet....

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.... The Bill (Old Version) would clearly reach the physical devices and virtual digit assets named, but because it omits "information in electronic form" and "computer system" it is less explicit about applying section 247(7) to, for example, intangible datasets or the integrity of entire computer systems; such items might have been less clearly covered under the Bill text. Interplay Section 489 expressly makes the application of section 247(7) contingent on items being tendered by the prosecution for an offence under the Act and applies "so far as may be." It cross-references section 247 (search provisions), section 248 (custody and requisitioning), section 261 (definitions for electronic material and computer systems) and section 484 (a pe....

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....to definitions: The Act explicitly ties the added electronic phrases to section 261(e) and 261(g); the Bill contains no such cross-reference because it omits the electronic material entirely. Practical impact of each change (summary): inclusion of "information in electronic form" and "computer system" broadens the statutory presumption to electronic evidence and whole systems; it clarifies that digital records, data stores and devices may attract the same prosecutorial evidentiary presumption under the regime that governs physical assets and documents. This increases the scope of materials against which the prosecution may invoke the protective presumption in section 247(7) (as applied), affects procedures for custodial delivery and handli....