Repealed or not in force · As amended up to 2026-08
(6) The assets ret ined under sub-section `(5)` may be dealt with in accordance wit the provisions of section 132A. i
(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act as if this Act had commenced on the 6th day of January, 1965.
Explanation 1.-In computing `of` ninety days for the purposes of sub-section during which any 'proceeding under this section is order or injunction of any court shall be excluded. Ezplabation 2.-In this section, the means any proceeding in respect of any year, Income-tax Act, date on which a may have been also all proceedings after such date in respect of any year. 13M. (1) The assets retained under sub-se tion (5) of section 132 may be dealt with in the following man er, namely:(i) The amount of the existing liability eferred to in clause (iii) of the said sub-section and the ount of the liability determined on completion of the regul r assessment or reassessment for all the assessment years re1 vant to the previo,us years to which the income referred to i clause (i) of that sub-section relates, and in respect of whi h he is in defauIt or is deemed to be in default may be rec vered out of such assets. :
Amendment of section 271.
(ii) If the a sets. oonsist, solely of money,, or: partly of money and part1 of. other assets, the.Income-tax Officer +may apply such money ! in the discharge of the liabilities referred to in clause (i) an the assessee shall'be discharged of such liability to the t of 'the money so.applied.
than. money - may i. alsa-t b e applied -liabilitg,referred> tojin clause (i) as remains for this purpose such assets
(8) The books of seized under sub-section (1) shall not be by the authorised officer for a period exceeding one eighty days from the date of the seizure unless the the same are recorded by him in writing Commissioner for such retention is obtained: Provided that the Commissio ,er shall not authorise the retena tion `of` the books of account and; other documents for a period
Provided that the Commissio ,er shall not authorise the retention `of` the books of account and; other documents for a period exceeding thirty days after all th proceedings under the Indian Income-tax Act, 1922 or this Act in respect `of` the years for which 11 of 1922. the books of account or other do L ents are relevant are completed. \
(7) If the Income-ta Officer is satisfied that the seized assets or any part thereof were eld by such person for or on behalf of "i, any other person, the Inco e-tax Officer may proceed under subsection `(5)` against such ot er person and all the provisions of `7` this section shall apply acco dingly. `9`
`9`
1. This Act may be called the Income-tax (Amendment) Act, Short title 1965.
`4` *x3 -2;-mm namely: -
'132. (1) Where the or of Inspection or the ~ o m m d - Search and sioner, in consequence of ion in his possession, has reason to believe that-
(a) any person to om a summons under sub-section `(1)` of section 37 Indian Income-tax Act, 1922 or 'under sub-section `(1)` ion 131 of this Act, or a notice under sub-section (4) on 22 of the Indian Income-tax Act, 1922 or under s (1) of section 142 of this Act was issued to prod se to be produced, anyebooks of account or othe has omitted or failed to produce, or cause to b uch books of account, or other documents as req summons or notice, or
11 of 1922.
(b) `any` person a summons or notice as aforesaid has been, or will not, or would not, produce or cause any books of account or other documents for, or rele,vant to, any proceeding Act, 1922 or under this Act, or
11 oE 1922.
`118` Law-I
,
`2`
Income-tax (c) 1922 or this Ac the undisclosed Assistant officer) to-[\ ]
Income-tax (Amendment) [ACT I
(c) an person is in possession of any money, bullion, jewellery o other valuable article or thing and such money, bullion, jewe ery or other valuable article or thing represents either wholly or partly income or property which has not been disclosed or bhe purposes of the Indian Income-tax Act, 1922 or this Ac hereinafter in this section referred to as 11 of 1922. the undisclosed come or property),
of Inspection, Inspecting
Assistant of Inspection or as the authorised
place where he has other docu-
(iv) place marks of id &want or other documents r make or cause tolbe extracts or copies therefrom, h \ i
(iv) place marks of id ntification on `any` books of &want or other documents r make or cause tolbe !made
(v) make a note or an i balli~n, jewdUery or other va
(3) The authariscd officer any ,.police officer or (of any offic or of b ~ t h , to.assist him for .dl o in sub-section ,(I) ,and it-~hall b to wqply with such rquisitim~.
(3) . ! e authorised ofleer m+y, to seize any such book of account, uxnent, money, ..bullion, J jewellery or other valuable thiqg, ..serve an order on the owner or 'the person wh ediate,possession or calitrol thereof that'he s h l l not a ~ t with or otherwise de81 with it except with ermission of such *o'ficer ~arrd~suoh CBcer may take su may be :necessary for ensuring compliance with t
Income-tax (Amendment)
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|OF|1~9651|:Income-tgx (Amendment)|7|
|*the amount of minimum penalty|
|(i)|of|sub-section|(1)|
|to furnish the return|
|required to furnish|
|(ii)|reduce or|the amount of minimum penalty|
|imposable on a|clause|(iii)|of s'tb-section|(I),|
|if he is satisfied that s~ch'~~erson-|
|(a)|in|the case|in clause|(i)|of this sub-|
|section|has,|prior .to|lnatice torhim .under sub-|
|section|,(a)|of|tin rgood|faith,|
|made full|case referred|
|. (8)|'has co-operated in any-e|relating to She assess-|
|ment of such income; and|
|(c)|has ei'ther paid or|arrangeanents|
|"for-payment of any tax or|consequence|
|of an order passed under|
|assessment year:|
|TProviUed th&t,?f 'in ^a case 'the mini um ,penalty imposable|
|u ~ d e r Jklause|'(i)|-or, -as the mse may 'be clause|^(iii)|of|sub-|
|,sedtion|(1)|in xespeCt|of|'the|relevadt asse ~ m e n t year, or where|\|
|.such|~disclostrre ,relates -to more than one|year, the|
|aggregate of the minimum penalty|
|those years, exceekls a sum of|
|2~&ducing-or'waiving'the|
|J-sioner xaliless the|
|tained.|
|other|,|adthurity.".|
|of|new|
|-fblleing section 4 h d l|be|linserbed, n~m@ly:|-|section|
|275A.|
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|1||OP19651<br>Income-tax (Amendment)<br>5||
|---|---|---|---|
|||authority),<br>the reasons for such objection andre-||
|||in the matter.||
|||the appli'cation under sub-section (10)||
|||the application under sub-section (11)||
|||after giving the applicant an oppor-||
|||such orders as it thinks fit.||
||5of1898.|(13) The provisions i f the Code of Criminal Procedure, 1898||
|||relating to searches and s<br>shall apply, so far as may be, to||
|||searches and seizure||
|||(14) The Board may m<br>e rules in relation to any search or<br>seizure under this section; i particular, and without prejudice<br>to the generality of the foreg 'ng power, such rules may provide<br>for the procedure to be £0110 ed by the authorised officer-<br>":||
|||(i) for obtaining ingre<br>into such building or place to||
|||be searched where free<br>thereto is not available;||
|||(ii) for ensuring safe<br>of any books of account or||
|||other documents or assets||
|||Explanation 1.-In<br>computing<br>ofninety days for||
|||the purposes of sub-section<br>during which any||
|||'proceeding under this section is<br>order or injunction||
|||of any court shall be excluded.||
|||Ezplabation 2.-In<br>this section, the<br>means||
|||any proceeding in respect of any year,||
||11of1922.|Income-tax Act,||
|||date on whicha||
|||may have been||
|||,also all proceedings||
|||after such date in respect of any year.||
|||13M.(1)The assets retained under sub-se tion(5)of sec-<br>tion 132 may be dealt with in the following man er, namely:-:<br>(i) The amount of the existing liability eferred to in<br>clause (iii) of<br>the said sub-section and the<br>ount of the<br>liability determined on completion of the regul r assessment<br>or reassessment for all the assessment years re1 vant to the<br>previo,us years to which the income referred to i clause (i)<br>of that sub-section relates, and in respect of whihhe is in<br>defauIt orisdeemed to be in default may be recveredout<br>of such assets.|of sec-$P!:$~E'<br>assets.<br>(i) The amount of the existing liability eferred to in<br>ount of the<br>liability determined on completion of the regul r assessment<br>or reassessment for all the assessment years re1 vant to the<br>previo,us years to which the income referred to i clause (i)<br>he is in<br>out|
officler may; during the course of the on oath any person who is found to of any~Book?s~ `of` account, documents, other valuable article or thing and person during such examination under the bullion, jewellery OF o%her valuable in this se,&ion and section `132A` seized under sub-section ( I ) , the a reasonable oppo~tunity to and making such enquiry daxs of the seizure, make an order, with previous approval of the Commissioner,-
11 of 1922.
`(i)` estimating undisclosed income the income from summary, mansuch~materials (ii), calculating the of tax on the income so estimated. in accordance provisions of the Indian 11 of 1922, Income-tax, Act, 1922 or (iii) specifying the that will be reqvired to satisfy any existing this Act and any one `ox` more3 of ' the- Acts (a), of suBtse@tion (1) off section 230A pe~som is in-default or is deemed to be in default, an-d'retain in his cu.stody! such, asseta. thexeof as are. in his opinion sufficient to satisfy the referred to in clauses (ii), and (iii) portion, if any, of the they were seized: Provided that if; after the materials available with' htm, the that it is not possibl'e to. sejzad: \>
that where a person has paid or made for payment of all the amounts referor any part thereof, the Xncome-tax approval of the Commissioner: as he may deem fit in the
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||-----q___lp|||-.<br>--<br>-<br>, - - . < - - . * - -|
||||8|8<br>Income-tax (Amendment)<br>,[ACTI |
|||Contra-||"275A.Whoever<br>any order refesred to in sub-|
|||vention||section(3)of<br>punishable with rigorous im-|
|||_of_order<br>made<br>under||prisonment<br>two years and shall also be<br>liable to fine.".|
|||sub-sec-|||
|||tion(3)|||
|||_of_sec-|||
|||tion132.|||
|f||Amend-||5.Insection279of the principa\Act,-|
|||inent<br>_of_section<br>279.||(i)in sub-section (I), after he words "offence under", the<br>words, figures and letter "sectioa275Aor" shall be inserted;<br>\|
|||||(ii) after sub-section (I), th following sub-section shall be<br>inserted, namely:-<br>"I,|
|I<br>I||||"(1A)Aperson shall not be proceeded against for an<br>offence under section277in re1 tion to the assessment for an<br>assessment year in respect of\<br>/which the penalty imposable|
|||||upon him under clause (iii) of sub-section (1) of section271<br>i<br>has been reduced or waived by an order under<br>sub-sec-|
|||||tion (4A) of that section.";|
|||||'inserted, namely:-|
|||Validation||6.Any search of a building or place by an Inspecting Assistant|
|,||OEcertain<br>searches<br>made.||Commissioner or Income-tax Officer purported to have been made<br>in pursuance of sub-section (I) of section132of the principal Act<br>before the commencement of this Act shall be deemed to have been|
|||||made in accordance with the provisions of that sub-section as|
|||||amended by thisActasifthose provisions were in fo~ce on the|
OF 19651 Income-tax (Amendment) 9
day the search was made and shall not be called in question before any court of law or any other authority merely on the ground-
(i) that the Inspecting Assistant Commissioner or the Income-tax 0ffice.r made such search with the assistance of any other person; or
(ii) that no proceeding under the Indian Income-tax Act, 11 of 1922. 1922, or the principal Act was pending against the person concerned when the search was authorised under the said sub-section.
1 of 1965. 7. (1) The Income-tax (Amendment) Ordinance, 1965 is hereby Repeal U repealed. saving.
Source: India Code