Income Tax Act

Official PDF pages 321–325

SOURCE PDF PAGE 321
(2) If the Assessing Officer or Assessing Officers, from whom the case is to be
transferred and the Assessing Officer or Assessing Officers, to whom the case is to
be transferred are not subordinate to the same specified income-tax authority, and
the concerned specified income-tax authorities––
( a )   are in agreement, then the specified income-tax authority from whose
jurisdiction the case is to be transferred may pass the order;
( b )   are not in agreement, the order transferring the case may be passed by
the Board or any such specified income-tax authority as the Board may,
by notification, specify in this behalf.
(3) The order of transfer under sub-section (1) or (2) may be passed by the specified
income-tax authority after giving the assessee a reasonable opportunity of being
heard, wherever it is possible to do so and after recording his reasons therefor.
(4) Nothing in sub-section (1) or (2) or (3) shall be deemed to require any such
opportunity of being heard to be given, where the transfer is from any Assessing
Officer or Assessing Officers (whether with or without concurrent jurisdiction) to
any other Assessing Officer or Assessing Officers (whether with or without concur -
rent jurisdiction) and the offices of all such officers are situated in the same city,
locality or place.
(5) The transfer of a case under sub-section (1) or (2) may be made at any stage of
the proceedings, and it shall not be necessary to re-issue any notice already issued
by the Assessing Officer or Assessing Officers from whom the case is transferred.
(6) For the purposes of section 241 and this section, “case”, in relation to any per -
son whose name is specified in any order or direction issued thereunder, means all
proceedings under this Act in respect of any year, which may be pending on the date
of such order or direction or which may have been completed on or before such
date, and includes also all proceedings under this Act which may be commenced
after the date of such order or direction in respect of any year.
(7) For the purposes of sections 241, 242 and this section, “specified income-tax
authority” means the Principal Director General or Director General or Principal
Chief Commissioner or Chief Commissioner or Principal Commissioner or
Commissioner.
Change of incumbent of an office.
244 .   (1) Whenever, in respect of any proceeding under this Act, an income-tax
authority ceases to exercise jurisdiction and is succeeded by another who has
and exercises jurisdiction, the income-tax authority so succeeding may continue
the proceeding from the stage at which the proceeding was left by his predecessor.
(2) Before the proceeding referred to in sub-section (1) is so continued, the assessee
concerned may demand that––
( a )   the previous proceeding or any part thereof be reopened; or
( b )   he be reheard before any order of assessment is passed against him.
Faceless jurisdiction of income-tax authorities.
245 .   (1) The Central Government may, by notification
54a
, make a scheme for the
purposes of—

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( a )   exercise of all or any of the powers and performance of all or any of the
functions conferred on, or assigned to, income-tax authorities under this
Act referred to in section 241;
( b )   vesting the jurisdiction with the Assessing Officer under section 242; or
( c )   exercise of power to transfer cases under section 243; or
( d )   exercise of jurisdiction in case of change of incumbency under section
244.
(2) The scheme referred to in sub-section (1) shall be made to impart greater
efficiency, transparency and accountability by—
( a )   eliminating the interface between the income-tax authority and the
assessee or any other person, to the extent technologically feasible;
( b )   optimising utilisation of the resources through economies of scale and
functional specialisation;
( c )   introducing a team-based exercise of powers and performance of
functions by two or more income-tax authorities, concurrently, in respect
of any area, or persons or classes of persons, or incomes or classes of
income, or cases or classes of cases, with dynamic jurisdiction.
(3) The Central Government may, for the purpose of giving effect to the scheme made
under sub-section (1), by notification, direct that any of the provisions of this Act
shall not apply or shall apply with such exceptions, modifications and adaptations
as specified in such notification.
(4) Every notification issued under sub-sections (1) and (3) shall, as soon as may be
after the notification is issued, be laid before each House of Parliament.
B.—Powers
Power regarding discovery, production of evidence, etc.
246.   (1)   The   Assessing   Officer,   Joint   Commissioner,   Joint   Commissioner
(Appeals), Commissioner (Appeals), Commissioner or Principal Commissioner,
or Chief Commissioner or Principal Chief Commissioner and the Dispute Resolution
Panel referred to in section 275(17)( a ), 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:––
( 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.
(2) The powers conferred under sub-section (1) may also be exercised in respect of
any person or class of persons by the following income-tax authorities (even when
there are no proceedings pending with respect to such person or class of persons
before them or any other income-tax authority):––
( a )   any income-tax authority (not below the rank of Assistant Commissioner
of Income-tax) notified by the Board in this behalf, for the purposes of

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making any inquiry or investigation in respect of an agreement referred
to in section 159;
( b )   the Principal Director General or Director General or Principal Director
or Director or Joint Director or Assistant Director for the purposes of
making any inquiry or investigation in relation to any concealment of
income, if he has the reason to suspect that any income has been so con -
cealed, or is likely to be so concealed by such person or class of persons
within his jurisdiction; and
( c )   the authorised officer referred to in section 247(1), before taking
action under section 247(1)( i ) to ( vii ), or during the course of such action,
if he has reason to suspect that any income has been concealed, or is likely
to be concealed by such person or class of persons within his jurisdiction.
(3) Any income-tax authority exercising the powers referred to in sub-sections (1)
and (2) may, subject to the rules made in this behalf, impound and retain in its
custody for such period as it thinks fit any books of account or other documents
63
produced before it in any proceeding under this Act.
(4) The Assessing Officer or the Assistant Director shall record the reasons for
impounding any books of account or other documents under sub-section (3) and
may retain such impounded books of account or other documents up to fifteen
days (exclusive of holidays), or for such further period, with the prior sanction of
the approving authority.
Search and seizure.
247 .   (1) Where the competent authority, in consequence of information in his
possession, has reason to believe that—
( a )   any person to whom a summons under section 131(1) or a notice under
section 142(1) of the Income-tax Act, 1961 (43 of 1961) or summons
under section 246(1) or a notice under section 268(1) of this Act,––
( I )   was issued to produce, or cause to be produced, any books of account
or other documents, or any information in electronic form or on
a computer system, has omitted or failed to produce, or cause to
be produced, such books of account or other documents or such
information as required by such summons or notice; or
( II )   has been issued or might be issued, will not, or would not, produce
or cause to be produced, any books of account or other documents,
or any information in electronic form or on a computer system
which will be useful for, or relevant to, any proceedings under the
Income-tax Act, 1961 (43 of 1961) or this Act; or
( b )   any person is in possession of any asset or information in relation to
any asset and such asset represents either wholly or partly, income
or property which has not been, or would not be, disclosed, for the
purposes of the Income-tax Act, 1961 (43 of 1961) or the Black
Money (Undisclosed Foreign Income and Assets) and Imposition of
Tax Act, 2015 (22 of 2015) or this Act (hereinafter referred to as the
undisclosed income or property),
then   the   approving   authority   may   authorise   any   Joint   Director   or   Joint
Commissioner or Assistant Director or Assistant Commissioner or Income-tax
Officer,   or   any   Joint   Director   or   Joint   Commissioner,   so   authorised,   may

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authorise any Assistant Director or Assistant Commissioner or Income-tax Officer,
(the officer so authorised in all cases being herein referred to as the authorised
officer) to––
( i )   enter and search any building, place, vessel, vehicle, aircraft where he
has reason to suspect that such assets, books of account or other docu -
ments, or such information in electronic form or on a computer system
are kept;
( ii )   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 elec -
tronic record or any information in electronic form or on a computer
system, to afford the authorised officer with such reasonable technical
and other assistance (including access code, by whatever name called) as
may be necessary to enable the authorised officer to inspect such books
of account or other documents or such information;
( iii )   break open the lock of any door, box, locker, safe, almirah, or other
receptacle or override the access code to any computer system for
exercising the powers conferred by clause ( i ) where the keys thereof
are, or the access to such building, place, etc., or the access code to such
computer system, as the case may be, is not available;
( iv )   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, any information in electronic
form, or a computer systems or asset;
( v )   place marks of identification on any books of account or other documents,
or make or cause to be made extracts or copies therefrom and also from
computer system;
( vi )   make a note or an inventory of any such asset, and stock-in-trade of the
business, found as a result of such search;
( vii )   seize any such books of account, other documents, computer systems
or asset (other than stock-in-trade of the business), found as a result of
such search.
(2) If any building, place, vessel, vehicle or aircraft referred to in sub-section (1)( i )
is within the area of jurisdiction of any Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner, but such income-tax
authority has no jurisdiction over the person referred to in sub-section (1)( a ) or ( b ),
then, irrespective of the fact that he has no jurisdiction, it shall be competent for
such income-tax authority to exercise the powers under sub-section (1), where he
has reason to believe that any delay in getting the authorisation from the Principal
Chief Commissioner or Chief Commissioner or Principal Commissioner or Com -
missioner having jurisdiction over such person may be prejudicial to the interests
of the revenue.
(3) If any Principal Chief Commissioner or Chief Commissioner or Principal Com -
missioner or Commissioner, in consequence of information in his possession, has
reason to suspect that any books of account, other documents, or any information

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in electronic form or on a computer system, or asset in respect of which an officer
has been authorised by the competent authority to take action under sub-sections
(1)( i ) to ( vii ) are or is kept in any building, place, vessel, vehicle or aircraft not
mentioned in the authorisation under sub-section (1), then such Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner or Commissioner
may, irrespective of anything contained in section 241, authorise the said officer to
take action under any of the sub-sections (1)( i ) to ( vii ) in respect of such building,
place, vessel, vehicle or aircraft.
(4)( a )( i ) The authorised officer may serve an order on the owner or the person, who
is in immediate possession or control of any valuable article or thing, other than
stock-in-trade of the business not to remove, part with or otherwise deal with it,
except with the previous permission of such authorised officer, where it is not pos -
sible or practicable to take physical possession of such valuable article or thing and
remove it to a safe place due to its volume, weight, or other physical characteristics
or due to its being of a dangerous nature; and
( ii ) such action of the authorised officer shall be deemed to be seizure of such valu -
able article or thing under sub-section (1)( vii );
( b )( i ) the authorised officer may, where it is not practicable to seize, any books of
account, other documents, asset, bank locker, bank account, or computer system, for
reasons other than mentioned under clause ( a ), serve an order on the owner or the
person who is in immediate possession or control thereof, not to remove, part with
or otherwise deal with it except with the previous permission of such officer and
such authorised officer may also take such steps as may be necessary for ensuring
compliance with this clause;
( ii ) such order shall not remain in force for a period exceeding sixty days from the
date of the order; and
( iii ) serving of such order shall not be deemed to be seizure of such books of
account, other documents, asset, bank locker, bank account or computer system
under sub-section (1)( vii ).
(5) The authorised officer may requisition the services of,—
( a )   any police officer or any officer of the Central Government, or of both;
or
( b )   any person or entity as may be approved by the Principal Chief Com -
missioner or the Chief Commissioner or the Principal Director General
or the Director General, in accordance with such procedure, as may be
prescribed, in this regard,
to assist him for all or any of the purposes specified in sub-sections (1) and (3) and
it shall be the duty of every such officer or person or entity to comply with such
requisition.
(6) The authorised officer may, during the course of any search or seizure, examine
on oath any person who is found to be in possession or control of any books of
account or other documents, or asset, or any information in electronic form or on
a computer system or having access to such computer system or any other person
who is present in the premises or is being searched, and––