Income Tax Act

Official PDF pages 331–335

SOURCE PDF PAGE 331
Power to call for information.
252.   (1)   The   Assessing   Officer,   the   Joint   Commissioner   or   the   Joint
Commissioner (Appeals) or the Commissioner (Appeals) may, for the purposes
of this Act, require any—
( a )   person, including a banking company or any officer thereof, to furnish,
within such time, requisite information or to furnish statements of account
and affairs verified in such manner specified by such authority, giving
such information in relation to such matters as, in the opinion of such
authority, will be useful for, or relevant to, any enquiry or proceedings
under this Act;
( b )   firm to furnish him with a return of the names and addresses of the
partners of the firm and their respective shares;
( c )   Hindu undivided family to furnish him with a return of the names and
addresses of the manager and the members of the family;
( d )   person whom he has reason to believe to be a trustee, guardian or agent,
to furnish him with a return of the names of the persons for or of whom
he is trustee, guardian or agent, and of their addresses;
( e )   assessee to furnish a statement of the names and addresses of all persons
to whom he has paid in any tax year, rent, interest, commission, royalty,
brokerage, or any annuity (not being any annuity taxable under the head
“Salaries”), amounting to more than   `   10000, or such higher amount as
may be prescribed, together with particulars of all such payments made;
( f )   dealer, broker or agent or any person concerned in the management
of a stock or commodity exchange to furnish a statement of the names
and addresses of all persons to whom he or the exchange has paid any
sum in connection with the transfer, whether by way of sale, exchange
or otherwise, of assets, or on whose behalf or from whom he or the
exchange has received any such sum, together with particulars of all
such payments and receipts.
(2) The powers conferred under sub-section (1)( a ) may also be exercised by the
competent authority or the Assistant Director.
(3) The powers under sub-section (1)––
( a )   shall not be exercised by any income-tax authority below the rank of
Principal Director or Director or Principal Commissioner or Commis -
sioner, other than the Joint Director or Assistant Director, without the
prior approval of the Principal Director or Director or, as the case may
be, the Principal Commissioner or Commissioner, in a case where no
proceeding is pending;
( b )   may be exercised by an income-tax authority notified under section 246(2)
( a ), for the purposes of an agreement referred to in section 159, even if
no proceedings are pending before it or any other income-tax authority.

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SOURCE PDF PAGE 332
Powers of survey.
253.   (1) Irrespective of anything contained in any other provision of this Act,
an income-tax authority may enter any place at which a business or profession,
or activity for charitable purpose is carried on, whether such place be the principal
place or not of such business or profession or of such activity for charitable purpose,
where such place—
( a )   is within the limits of the area assigned to such authority; or
( b )   is occupied by any person in respect of whom such authority exercises
jurisdiction; or
( c )   in respect of which such authority is authorised for the purposes of   this
section by income-tax authority, who is assigned the area within which
such place is situated or who exercises jurisdiction in respect of any
person occupying such place,
and, upon entry into such a place, may require any proprietor, trustee, employee
or any other person who may at that time and place be attending in any manner
to, or helping in, the carrying on of such business or profession or such activity for
charitable purpose—
( i )   to provide the necessary technical and other assistance (including access
code) to enable the inspection of such books of account or other docu -
ments, or information in electronic form or on a computer system, as
may be required and which may be available at such place;
( ii )   to provide the necessary facility to check or verify the asset, stock, which
may be found therein; and
( iii )   to furnish such information as such authority may require as to any
matter which may be useful for, or relevant to, any proceeding under
this Act.
(2) For the purposes of this section, a place where a business or profession, or
activity for charitable purpose is carried on shall also include any other place,
whether any business or profession or activity for charitable purpose is carried on
therein or not, in which the person carrying on such business or profession or activity
for charitable purpose states that any of his books of account or other documents
or any part of his cash or stock or other valuable article or thing or computer
system relating to such business or profession or activity for charitable purpose,
are or is kept.
(3) An income-tax authority may enter any place of business or profession or activity
for charitable purpose referred to in sub-sections (1) and (2), only during the hours
at which such place is open for the conduct of business or profession or activity
for charitable purpose and, in the case of any other place, only after sunrise and
before sunset.

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SOURCE PDF PAGE 333
(4) An income-tax authority may, for the purposes of verifying that tax has been
deducted or collected at source as per the provisions of Chapter XIX-B of this Act,
after sunrise and before sunset, enter––
( a )   any office, or any other place where business or profession or activity for
charitable purpose is carried on, within the limits of the area assigned
to such authority; or
( b )   any place in respect of which such authority is authorised for the purposes
of this section by an income-tax authority who is assigned the area within
which such place is situated or where books of account or documents,
or computer system are kept,
and on entry to such office or place, the income-tax authority may require the
deductor or the collector or any other person who may at that time and place be
attending in any manner to such work—
( i )   to provide the necessary technical and other assistance (including access
code) to enable the inspection of such books of account or other docu -
ments, or information in electronic form or on a computer system, as
may be required and which may be available at such place; and
( ii )   to furnish such information as may be required in relation to such
matter.
(5) An income-tax authority acting under this section may—
( a )   place marks of identification on the books of account or other documents
inspected by such authority and make or cause to be made extracts or
copies therefrom or from any computer system;
( b )   record the statement of any person on oath which may be useful for,
or relevant to, any proceeding under this Act;
( c )   impound after recording reasons for doing so, any books of account or
other documents, or any computer system inspected by it, and retain it
for a period—
( i )   up to fifteen days (exclusive of holidays); or
( ii )   exceeding fifteen days (exclusive of holidays) with the prior approval
of the approving authority;
( d )   make an inventory of any asset or stock checked or verified by such
income-tax authority.
(6) The income-tax authority acting under sub-section (4) shall only undertake the
actions referred under sub-sections (5)( a ) and (5)( b ).
(7) An income-tax authority acting under this section shall, on no account, remove
or cause to be removed from the place wherein it has entered, any asset or stock.
(8) The income-tax authority having regard to the nature and scale of expenditure
incurred, for the purposes of verifying the expenditure made by the person in
connection with any function, ceremony or event, if it is of the opinion that it is
necessary and expedient to do so, after such function, ceremony or event, may—

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( a )   require the person by whom such expenditure has been incurred or any
other person who is likely to possess the information regarding such
expenditure, to furnish such information which may be useful for, or
relevant to, any proceeding under this Act;
( b )   record the statements of the person or any other person on oath in this
behalf; and
( c )   any statement so recorded may thereafter be used as evidence in any
proceeding under this Act.
(9) If a person is required to provide facility to the income-tax authority to inspect
books of account or other documents in any form, or any computer system or to
check or verify any cash, stock or other valuable article or thing or to furnish any
information or to have his statement recorded, either refuses or evades to do so, the
income-tax authority shall have all the powers under section 246(1) for enforcing
compliance with the requirement.
(10) The action under this section shall be taken by an income-tax authority with
the prior approval of the Principal Director General or the Director General or the
Principal Chief Commissioner or the Chief Commissioner.
(11) For the purposes of this section,—
( A )   “income-tax authority” means—
( a )   a Principal Commissioner or Commissioner, a Principal Director
or Director, a Joint Commissioner or Joint Director, an Assistant
Director or a Deputy Director or an Assessing Officer, or a Tax
Recovery Officer; and
( b )   includes an Inspector of Income-tax, for the purposes of sub-
sections (1)( i ), (5)( a ) and (8),
who is subordinate to the Principal Director General or the Director
General or the Principal Chief Commissioner or the Chief Commissioner,
as specified by the Board;
( B )   “proceeding” means any proceeding under this Act in respect of any
year which may be pending on the date on which the powers under this
section are exercised 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.
Power to collect certain information.
254 .   (1) Irrespective of anything contained in any other provision of this Act,
an income-tax authority may, for the purposes of collecting any information
which may be useful for, or relevant to, the purposes of this Act, enter––
( a )   any building or place within the limits of the area assigned to such
authority; or
( b )   any building or place occupied by any person in respect of whom such
authority exercises jurisdiction,

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SOURCE PDF PAGE 335
at which a business or profession is carried on, regardless of the fact that such place
be the principal place or not of such business or profession and require any propri -
etor or employee or any other person, who may at that time and place, be attending
in any manner to, or helping in, or carrying on of such business or profession, to
furnish such information as may be prescribed.
(2) The income-tax authority may enter any place of business or profession referred
to in sub-section (1) only during the hours at which such place is open for the con -
duct of business or profession.
(3) The income-tax authority acting under this section shall, on no account, remove
or cause to be removed from the building or place wherein it has entered, any books
of account or other documents or any cash or stock or other valuable article or thing.
(4) For the purposes of this section, “income-tax authority” means––
( a )   a Joint Commissioner, or a Joint Director or an Assistant Director or an
Assessing Officer; and
( b )   an Inspector of Income-tax, authorised by the Assessing Officer to   exercise
the powers conferred under this section in relation to the area in respect
of which the Assessing Officer exercises jurisdiction or part thereof.
Power to inspect registers of companies.
255 .   The   Assessing   Officer,   assessment   unit,   verification   unit,   the   Joint
Commissioner or the Joint Commissioner (Appeals) or the Commissioner
(Appeals), or any person subordinate thereof and authorised in writing in this behalf
by such officer or authority, may inspect, and if necessary, take copies, or cause
copies to be taken, of any register of the members, debenture holders or mortgagees
of any company or of any entry in such register.
Power of certain income-tax authorities.
256 .   The Principal Director General or Director General or Principal Director or
Director, the Principal Chief Commissioner or Chief Commissioner or Principal
Commissioner or Commissioner and the Joint Commissioner shall be competent
to make any enquiry under this Act, and for this purpose, shall have all the powers
that an Assessing Officer has under this Act in relation to the making of enquiries.
Proceedings before income-tax authorities to be judicial proceedings.
257.   (1) Any proceeding under this Act before an income-tax authority shall be
deemed to be a judicial proceeding within the meaning of sections 229 and
267 and for the purposes of section 233 of the Bharatiya Nyaya Sanhita, 2023
(45 of 2023).
(2) Every income-tax authority shall be deemed to be a Civil Court for the purposes
of section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023),
but not for the purposes of Chapter XXVIII of the Bharatiya Nagarik Suraksha
Sanhita, 2023 (46 of 2023).
Disclosure of information relating to assessees.
258.   (1) The Board or any other income-tax authority specified by it by an order
in this behalf, may furnish or cause to be furnished to—
( a )   any officer, authority or body performing any functions under any law
relating to the imposition of any tax, duty or cess, or dealings in  
9
foreign
exchange as defined in section 2( n ) of the Foreign Exchange Management
Act, 1999 (42 of 1999); or