Union Budget 2025-26 (Full) + Finance Bill, 2025

XVI. Amendments proposed in sections 132 and 132B for rationalising provisions

Section 132 of the Act relates to search and seizure. As per the provisions of sub-section (8) of section 132 of the Act the last date for taking approval for retention of seized books of account or other documents is 30 days from the date of the assessment or reassessment or recomputation order. In the course of search assessment proceedings in group cases, the assessment orders of one assessee may be passed earlier than the assessment orders of another assessee. Further, the segregation of seized books of account or other documents pertaining to various assesses is also very difficult in case the searched premise is same. It is also the case that the seized books of account or other documents pertaining to the completed assessment cases may be required for assessment of ongoing/pending assessment cases. Since, the time limit of taking approval for retention will be different for different cases, the Assessing Officers are required to have constant vigil on the floating time-barring dates for taking the approval for retention of the seized books of account or other documents, the burden of which is avoidable.

2. Therefore, it is proposed to amend sub-section (8) of section 132 of the Act to provide that the time limit for taking approval for retention shall be one month from end of the quarter in which the assessment or reassessment or recomputation order has been made.

3. Explanation 1 to section 132 of the Act defines the circumstances in which last of the authorisation for search is to be deemed as to have been executed. In order to align the same with the other provisions of the Act, It is proposed to substitute the word “authorisation” with “authorisations”.

4. Explanation 1 to the section 132B of the Act provides that “execution of an authorisation for search or requisition” shall have the same meaning as assigned to it in Explanation 2 to section 158BE of the Act. Vide Finance (No. 2) Act, 2024 the concept of block assessment was introduced by amending provisions of Chapter XIV-B (sections 158B to 158BI of the Act). As per amended provisions, “execution of an authorisation for search or requisition” is now defined in Explanation to section 158B of the Act. In order to reflect this change, it is proposed to amend clause (ii) of Explanation 1 to the section 132B of the Act to update referencing to section 158B of the Act instead of the present section 158BE of the Act.

5. These amendments will take effect from the 1st day of April, 2025.

[Clauses 37 & 38]

 

---

Full Text:

Union Budget 2025-26 (Full) + Finance Bill, 2025

Search and seizure: uniform quarterly-based time limit for retention approvals and updated cross-references for execution definitions. The Bill amends section 132 to provide that the time limit for taking approval for retention of seized books of account or documents will be one month from the end of the quarter in which the assessment, reassessment or recomputation order is made, addressing administrative difficulties in group search cases. It also modifies Explanation 1 to section 132 to substitute 'authorisation' with 'authorisations', and updates Explanation 1 to section 132B to reference section 158B for the meaning of 'execution of an authorisation for search or requisition'.