Section 131. Power regarding discovery, production of evidence, etc

131. Power regarding discovery, production of evidence, etc .—(1) The[1] [Assessing Officer], 2[Deputy Commissioner (Appeals)], 3[,Commissioner (Appeals) 4[, 5[Principal Chief Commissioner or Chief Commissioner or[6] [Principal Commissioner or Commissioner] and Dispute Resolution Panel referred to in clause (a) of sub-section (15) of section 144C]] shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the following matters, namely:— - (a) discovery and inspection; (b) enforcing the attendance of any person, including any officer of a banking company and examining him on oath; (c) compelling the production of books of account and other documents; and - (d) issuing commissions. 7[(1A) 8[If the 9[Principal Director General or Director General] or 10[Principal Director or Director] or[11] [Joint Director] or[12] [Assistant Director or Deputy Director], or the authorised officer referred to in sub-section (1) of section 132 before he takes action under clauses (i) to (v) of that sub-section,] has reason to suspect that any income has been concealed, or is likely to be concealed, by any person or class of persons, within his jurisdiction, then, for the purposes of making any enquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the income-tax authorities referred to in that sub-section, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other income-tax authority. 13[(2) For the purpose of making an inquiry or investigation in respect of any person or class of persons in relation to an agreement referred to in section 90 or section 90A, it shall be competent for any income-tax authority not below the rank of Assistant Commissioner of Income-tax, as may be notified by the Board in this behalf, to exercise the powers conferred under sub-section (1) on the income-tax authorities referred to in that sub-section, notwithstanding that no proceedings with respect to such person or class of persons are pending before it or any other income-tax authority.] (3) Subject to any rules made in this behalf, any authority referred to in sub-section (1)[7] [or sub-section (1A)][13] [or sub-section (2)] may impound and retain in its custody for such period as it thinks fit any books of account or other documents produced before it in any proceeding under this Act: Provided that[14] [an[15] [Assessing Officer] or an[16] [Assistant Director or Deputy Director]] shall not— (a) impound any books of account or other documents without recording his reasons for so doing, or 1. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer" (w.e.f. 1-4-1988). 2. Subs. by s. 2, ibid ., for "Appellate Assistant Commissioner" (w.e.f. 1-4-1988). 3. Subs. by Act 29 of 1977, s. 3 and the Fifth Schedule, for "and Commissioner" (w.e.f. 10-7-1978). 4. Subs. by Act 33 of 2009, s. 50, for "and Chief Commissioner or Commissioner" (w.e.f. 1-10-2009). 5. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013). 6. Subs. by s. 4, ibid., for "Commissioner" (w.e.f. 1-6-2013). 7. Ins. by Act 41 of 1975, s. 34 (w.e.f. 1-10-1975). 8. Subs. by Act 26 of 1988, s. 33, for "If the Assistant Director of Inspection" (w.e.f. 1-6-1988). 9. Subs. by Act 25 of 2014, s. 4, for "Director General" (w.e.f. 1-6-2013). 10. Subs. by s. 4, ibid ., for "Director" (w.e.f. 1-6-2013). 11. Subs. by Act 21 of 1998, s. 3, for "Deputy Director" (w.e.f. 1-10-1998). 12. Subs. by s. 3, ibid ., for "Assistant Director" (w.e.f. 1-10-1998). 13. Ins. by Act 8 of 2011, s. 22 (w.e.f. 1-6-2011). 14. Subs. by Act 41 of 1975, s. 34, for "an Income-tax Officer" (w.e.f. 1-10-1975). 15. Subs. by Act 4 of 1988, s. 2, for "Income-tax Officer" (w.e.f. 1-4-1988). 16. Subs. by Act 21 of 1998, s. 3, for "Assistant Director" (w.e.f. 1-10-1998). Earlier substituted as "Assistant Director" by Act 4 of 1988, s. 2, for "Assistant Director of Inspection" (w.e.f. 1-4-1988). (b) retain in his custody any such books or documents for a period exceeding fifteen days (exclusive of holidays) without obtaining the approval of[1] [ the[2] [Principal Chief Commissioner or Chief Commissioner] or 3[Principal Director General or Director General] or 4[Principal Commissioner or Commissioner ]or[5] [Principal Director or Director] therefor, as the case may be.] 6 [132. Search and seizure .—(1) Where the 7[3[Principal Director General or Director General] or 5[Principal Director or Director]] or the 8[2[Principal Chief Commissioner or Chief Commissioner] or 4[Principal Commissioner or Commissioner]] 9[or Additional Director or Additional Commissioner] 10[or Joint Director or Joint Commissioner] in consequence of information in his possession, has reason to believe that— (a) any person to whom a summons under sub-section (1) of section 37 of the Indian Income-tax Act, 1922 (11 of 1922), or under sub-section (1) of section 131 of this Act, or a notice under sub-section (4) of section 22 of the Indian Income-tax Act, 1922, or under sub-section (1) of section 142 of this Act was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such summons or notice, or (b) any person to whom a summons or notice as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act, or (c) any person is in possession of any money, bullion, jewellery or other valuable article or thing and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly income or property[11] [which has not been, or would not be, disclosed] for the purposes of the Indian Income-tax Act, 1922 (11 of 1922), or this Act (hereinafter in this section referred to as the undisclosed income or property), 12[then,— (A) the[7] [[3] [Principal Director General or Director General] or[5] [Principal Director or Director] or the[8] [[2] [Principal Chief Commissioner or Chief Commissioner] or[4] [Principal Commissioner or Commissioner], as the case may be, may authorise any[13] [Additional Director or Additional 1. Subs. by Act 26 of 1988, s. 33, for "the Chief Commissioner or Commissioner therefor" (w.e.f. 1-6-1988). Earlier substituted as "Chief Commissioner or Commissioner" for "Commissioner" by 4 of 1988, s. 2 (w.e.f. 1-4-1988). 2. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013). 3. Subs. by s. 4, ibid ., for "Director General" (w.e.f. 1-6-2013). 4. Subs. by s. 4, ibid ., for "Commissioner" (w.e.f. 1-6-2013). 5. Subs. by s. 4, ibid ., for "Director" (w.e.f. 1-6-2013). 6. Subs. by Act 1 of 1965, s. 2, for section 132 (w.e.f. 12-3-1965). 7. Subs. by Act 4 of 1988, s. 2, for "Director of Inspection" (w.e.f. 1-4-1988). 8. Subs. by Act s. 2, ibid ., for "Commissioner" (w.e.f. 1-4-1988). 9. Subs. by Act 33 of 2009, s. 51, for "or any such Joint Director or Joint Commissioner as may be empowered in this behalf by the Board," (w.e.f. 1-6-1994). Earlier amended by Act 41 of 1975, s. 35 (w.e.f. 1-10-1975), 21 of 1998, s. 3 (w.e.f. 1- 10-1998) and 4 of 1988, s. 2 (w.e.f. 1-4-1988). 10. Ins. by s. 51, ibid . (w.e.f. 1-10-1998). 11. Subs. by Act 41 of 1975, s. 35, for "which has not been disclosed" (w.e.f. 1-10-1975). 12. Subs. by s. 35, ibid ., for "he may authorise any Deputy Director of Inspection, Inspecting Assistant Commissioner, Assistant Director of Inspection or Income-tax Officer (hereinafter referred to as the authorized officer) to—" (w.e.f. 1- 10-1975). 13. Ins. by Act 33 of 2009, s. 51 (w.e.f. 1-6-1994). Commissioner or][1] [Joint Director],[2] [Joint Commissioner],[3] [Assistant Director or Deputy Director], 4[Assistant Commissioner or Deputy Commissioner] or Income-tax Officer, or (B) such[5] [Additional Director or Additional Commissioner or][1] [Joint Director], or[2] [Joint Commissioner], as the case may be, may authorise any[3] [Assistant Director or Deputy Director], 4[Assistant Commissioner or Deputy Commissioner ]or Income-tax Officer, (the officer so authorised in all cases being hereinafter referred to as the authorised officer) to—] (i) enter and search any[6] [building, place, vessel, vehicle or aircraft] where he has reason to suspect that such books of account, other documents, money, bullion, jewellery or other valuable article or thing are kept; (ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available; 7[(iia) search any person who has got out of, or is about to get into, or is in, the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that such person has secreted about his person any such books of account, other documents, money, bullion, jewellery or other valuable article or thing;] 8[(iib) require any person who is found to be in possession or control of any books of account or other documents maintained in the form of electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000), to afford the authorised officer the necessary facility to inspect such books of account or other documents;] (iii) seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search: 9[Provided that 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;] (iv) place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom; (v) make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing: 1. Subs. by Act 21 of 1998, s. 3, for "Deputy Director" (w.e.f. 1-10-1998). Earlier substituted as "Deputy Director" for "Deputy Director of Inspection" by Act 4 of 1988, s. 2 (w.e.f. 1-4-1988). 2. Subs. by s. 3, ibid ., for "Deputy Commissioner" (w.e.f. 1-10-1998). Earlier substituted as "Deputy Commissioner" for "Inspecting Assistant Commissioner" by s. 2, ibid . (w.e.f. 1-4-1988). 3. Subs. by s. 3, ibid ., for "Assistant Director" (w.e.f. 1-10-1998). Earlier substituted as "Assistant Director" for "Assistant Director of Inspection" by s. 2, ibid . (w.e.f. 1-4-1988). 4. Subs. by s. 3, ibid ., "Assistant Commissioner" (w.e.f. 1-10-1998). Earlier substituted as "Assistant Commissioner" for "or Income tax officer" by s. 37, ibid . (w.e.f. 1-4-1988). 5. Ins. by Act 33 of 2009, s. 51 (w.e.f. 1-6-1994). 6. Subs. by Act 41 of 1975, s. 35, for "building or place" (w.e.f. 1-10-1975). 7. Ins. by s. 35, ibid . (w.e.f. 1-10-1975). 8. Ins. by Act 20 of 2002, s. 56 (w.e.f. 1-6-2002). 9. Ins. by Act 32 of 2003, s. 59 (w.e.f. 1-6-2003). 1[Provided that where any building, place, vessel, vehicle or aircraft referred to in clause (i) is within the area of jurisdiction of any[2] [Principal Chief Commissioner or Chief Commissioner] or[3] [Principal Commissioner or Commissioner], but such[2] [Principal Chief Commissioner or Chief Commissioner] or 3 [Principal Commissioner or Commissioner] has no jurisdiction over the person referred to in clause (a) or clause (b) or clause (c), then, notwithstanding anything contained in[4] [section 120], it shall be competent for him to exercise the powers under this sub-section in all cases where he has reason to believe that any delay in getting the authorisation from the[5] [Principal Chief Commissioner or Chief Commissioner] or[6] [Principal Commissioner or Commissioner] having jurisdiction over such person may be prejudicial to the interests of the revenue:] 11[(1A) Where any 5[Principal Chief Commissioner or Chief Commissioner] or 6[Principal Commissioner or Commissioner], in consequence of information in his possession, has reason to suspect that any books of account, other documents, money, bullion, jewellery or other valuable article or thing in respect of which an officer has been authorised by the[12] [Principal Director General or Director General] or[13] [Principal Director or Director] or any other[5] [Principal Chief Commissioner or Chief Commissioner] or[6] [Principal Commissioner or Commissioner] or[14] [Additional Director or Additional Commissioner] 1. Ins. by Act 41 of 1975, s. 35(w.e.f. 1-10-1975). 2. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013). Earlier substituted as "Chief Commissioner or Commissioner" by Act 4 of 1988, s. 2 (w.e.f. 1-4-1988). 3. Subs. by s. 4, ibid., for "Commissioner" (w.e.f. 1-6-2013). Earlier substituted as "Chief Commissioner or Commissioner" by s. 2, ibid . (w.e.f. 1-4-1988). 4. Subs. by Act 4 of 1988, s. 37, for "section 121" (w.e.f. 1-4-1988). 5. Subs. by Act 25 of 2014, s. 4, "Chief Commissioner or Commissioner" (w.e.f. 1-6-2013). Earlier substituted as "Chief Commissioner or Commissioner" for "Commissioner" by Act 4 of 1988, s. 2 (w.e.f. 1-4-1988). 6. Subs. by s. 4, ibid ., for "Commissioner" (w.e.f. 1-6-2013). 7. Ins. by Act 26 of 1988, s. 34 (w.e.f. 1-4-1989). 8. Ins. by Act 32 of 2003, s. 59 (w.e.f. 1-6-2003). (2) The authorised officer may requisition the services of any police officer or of any officer of the Central Government, or of both, to assist him for all or any of the purposes specified in sub-section (1) 6[or sub-section (1A)] and it shall be the duty of every such officer to comply with such requisition. (3) The authorised officer may, where it is not practicable to seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing,[7] [for reasons other than those mentioned in the second proviso to sub-section (1),] serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section. 8[ Explanation. —For the removal of doubts, it is hereby declared that serving of an order as aforesaid under this sub-section shall not be deemed to be seizure of such books of account, other documents, money, bullion, jewellery or other valuable article or thing under clause (iii) of sub-section (1).] (4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books of account, documents, money, bullion, jewellery or other valuable article or thing and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act. 8[ Explanation. —For the removal of doubts, it is hereby declared that the examination of any person under this sub-section may be not merely in respect of any books of account, other documents or assets found as a result of the search, but also in respect of all matters relevant for the purposes of any investigation connected with any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act.] [6] [(4A) Where any books of account, other documents, money, bullion, jewellery or other valuable article or thing are or is found in the possession or control of any person in the course of a search, it may be presumed— (i) that such books of account, other documents, money, bullion, jewellery or other valuable article or thing belong or belongs to such person; 1. Ins. by Act 33 of 2009, s. 51, (w.e.f. 1-10-1998). 2. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013). Earlier substituted as "Chief Commissioner or Commissioner" for "Commissioner" by Act 4 of 1988, s. 2 (w.e.f. 1-4-1988). 3. Subs. by s. 4, ibid ., for "Commissioner" (w.e.f. 1-6-2013). 4. Subs. by Act 4 of 1988, s. 37, for "section 121" (w.e.f. 1-4-1988). 5. Ins. by Act 7 of 2017, s. 50 (w.e.f. 1-10-1975). 6. Ins. by Act 41 of 1975, s. 35 (w.e.f. 1-10-1975). 7. Ins. by Act 26 of 1988, s. 34 (w.e.f. 1-4-1989). 8. Ins. by Act 4 of 1988, s. 37 (w.e.f. 1-4-1989). (ii) that the contents of such books of account and other documents are true; and (iii) that the signature and every other part of such books of account and other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or 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 and executed or attested by the person by whom it purports to have been so executed or attested.] 1* * * * * (8) The books of account or other documents seized under sub-section (1)[2] [or sub-section (1A)] shall not be retained by the authorised officer for a period exceeding[3] [thirty days from the date of the order of assessment under[4] [section 153A or clause (c) of section 158BC]] unless the reasons for retaining the same are recorded by him in writing and the approval of the[5] [[6] [Principal Chief Commissioner or Chief Commissioner],[7] [Principal Commissioner or Commissioner],[8] [Principal Director General or Director General] or[9] [Principal Director or Director]] for such retention is obtained: Provided that the 5[6[Principal Chief Commissioner or Chief Commissioner], 7[Principal Commissioner or Commissioner],[8] [Principal Director General or Director General] or[9] [Principal Director or Director]] shall not authorise the retention of the books of account and other documents for a period exceeding thirty days after all the proceedings under the Indian Income-tax Act, 1922 (11 of 1922), or this Act in respect of the years for which the books of account or other documents are relevant are completed. 10[(8A) An order under sub-section (3) shall not be in force for a period exceeding sixty days from the date of the order.] (9) The person from whose custody any books of account or other documents are seized under sub-section (1)[2] [or sub-section (1A)] may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by him in this behalf, at such place and time as the authorised officer may appoint in this behalf. 11 [(9A) Where the authorised officer has no jurisdiction over the person referred to in clause (a) or clause (b) or clause (c) of sub-section (1), the books of account or other documents, or any money, bullion, jewellery 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 authorised 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 authorisations for search was executed and thereupon the powers exercisable by the authorised officer under sub-section (8) or sub-section (9) shall be exercisable by such Assessing Officer.] [12] [(9B) Where, during the course of the search or seizure or within a period of sixty days from the date on which the last of the authorisations for search was executed, the authorised officer, for reasons to 1. Sub-sections (5) to (7) omitted by Act 20 of 2002, s. 56 (w.e.f. 1-6-2002). 2. Ins. by Act 41 of 1975, s. 35 (w.e.f. 1-10-1975). 3. Subs. by Act 20 of 2002, s. 56, for "one hundred and eighty days from the date of the seizure" (w.e.f. 1-6-2002). 4. Subs. by Act 32 of 2003, s. 59, for "under clause (c) of section 158BC" (w.e.f. 1-6-2003). 5. Subs. by Act 26 of 1997, s. 41, for "Chief Commissioner or Commissioner" (w.e.f. 1-10-1996). 6. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013). 7. Subs. by s. 4, ibid ., for "Commissioner" (w.e.f. 1-6-2013). 8. Subs. by s. 4, ibid ., for "Director General" (w.e.f. 1-6-2013). 9. Subs. by s. 4, ibid ., for "Director" (w.e.f. 1-6-2013). 10. Subs. by Act 20 of 2002, s. 56, for sub-section (8A) (w.e.f. 1-6-2002). 11. Subs. by s. 56, ibid ., for sub-section (9A) (w.e.f. 1-6-2002). 12. Ins. by Act 7 of 2017, s. 50 (w.e.f. 1-4-2017). be recorded in writing, is satisfied that for the purpose of protecting the interest of revenue, it is necessary so to do, he may with the previous approval of the Principal Director General or Director General or the Principal Director or Director, by order in writing, attach provisionally any property belonging to the assessee, and for the said purpose, the provisions of the Second Schedule shall, mutatis mutandis , apply. (9C) Every provisional attachment made under sub-section (9B) shall cease to have effect after the expiry of a period of six months from the date of the order referred to in sub-section (9B). (9D) The authorised officer may, during the course of the search or seizure or within a period of sixty days from the date on which the last of the authorisations for search was executed, make a reference to a Valuation Officer referred to in section 142A, who shall estimate the fair market value of the property in the manner provided under that section and submit a report of the estimate to the said officer within a period of sixty days from the date of receipt of such reference.] (10) If a person legally entitled to the books of account or other documents seized under sub-section (1)[1] [or sub-section (1A)] objects for any reason to the approval given by the[2] [[3] [Principal Chief Commissioner or Chief Commissioner],[4] [Principal Commissioner or Commissioner],[5] [Principal Director General or Director General] or[6] [Principal Director or Director]] under sub-section (8), he may make an application to the Board stating therein the reasons for such objection and requesting for the return of the books of account or other documents[7] [and the Board may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit]. 8* * * * * 9[(13) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches and seizure shall apply, so far as may be, to searches and seizure under sub-section (1) or sub-section (1A).] (14) The Board may make rules in relation to any search or seizure under this section; in particular, and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer— (i) for obtaining ingress into[10] [any building, place, vessel, vehicle or aircraft] to be searched where free ingress thereto is not available; (ii) for ensuring safe custody of any books of account or other documents or assets seized. [11] [ Explanation 1.—For the purposes of sub-sections (9A), (9B) and (9D), with respect to "execution of an authorisation for search", the provisions of sub-section (2) of section 153B shall apply.] Explanation 2.— In this section, the word "proceeding" means any proceeding in respect of any year, whether under the Indian Income-tax Act, 1922 (11 of 1922), or this Act, which may be pending on the date on which a search is authorised under this section or which may have been completed on or before such date and includes also all proceedings under this Act which may be commenced after such date in respect of any year.] 1. Ins. by Act 41 of 1975, s. 35 (w.e.f. 1-10-1975). 2. Subs. by Act 26 of 1997, s. 41, for "Chief Commissioner or Commissioner" (w.e.f. 1-10-1996). 3. Subs. by Act 25 of 2014, s. 4, for "Chief Commissioner" (w.e.f. 1-6-2013). 4. Subs. by s. 4, ibid ., for "Commissioner" (w.e.f. 1-6-2013). 5. Subs. by s. 4, ibid ., for "Director General" (w.e.f. 1-6-2013). 6. Subs. by s. 4, ibid ., for "Director" (w.e.f. 1-6-2013). 7. Ins. by Act 20 of 2002, s. 56 (w.e.f. 1-6-2002). 8. Sub-sections (11), (11A) and (12) omitted by Act 20 of 2002, s. 56 (w.e.f. 1-6-2002). 9. Subs. by Act 41 of 1975, s. 35, for sub-section (13) (w.e.f. 1-10-1975). 10. Subs. by s. 35, ibid ., for "such building or place" (w.e.f. 1-10-1975). 11. Subs. by Act 7 of 2017, s. 50, for Explanation 1 (w.e.f. 1-4-2017).