Power of Officers while Conducting Search Operations
Introduction
Section 132 of the Income-tax Act empowers authorised officers to conduct search operations for discovering books of account, documents, money, bullion, jewellery, or other valuable articles or things representing undisclosed income. These powers operate alongside Rule 112 of the Income-tax Rules and are exercised only in accordance with statutory safeguards.
Powers of the Authorised Officer
- Power to Enter and Search
The officer may enter and search any building, place, vessel, vehicle, or aircraft where there is reason to suspect that books or assets are kept.
- The “reason to believe” must be formed by the competent authority qua-assessee. Entry into specific places for search may thereafter be based on mere suspicion.
- Separate warrants are required for each distinct premise. Search cannot extend to premises not mentioned in the warrant.
- Search may commence at any time of day or night and may continue until completion.
- Free Ingress and Presence during Search
Under Rule 112(3) , any person in charge of the premises must allow free entry and reasonable facilities for the search. Obstruction may attract prosecution under Bhartiya Nyaya Sanhita, 2023. The occupant or a representative may attend the proceedings.
- Search of Places Occupied by Pardanasheen Women
In premises occupied by women who, according to custom, do not appear in public, the officer must provide an opportunity to leave before entering, as per Rule 112(4) / Rule 112(4A) . This protection does not extend to women engaged in business or professional activity.
- Forceful Entry
Where entry cannot be obtained after disclosing authority and purpose, the officer may break open doors, windows, or use assistance from police or other government officers.
- Search of Premises Not Belonging to the Assessee
Search may extend to premises not owned or occupied by the assessee if the competent authority is satisfied that books or assets relating to the assessee are kept there. Residential premises of third parties cannot be covered by survey; therefore, search may be undertaken with appropriate warrant.
- Authority to Stop and Search Moving Conveyances
Under Rule 112(4A) , an officer may stop a moving vehicle, vessel, or aircraft and enter or break open the same if necessary for conducting search.
- Power to Break or Open Locks
Section 132(1)(ii) and Rule 112(4B) authorise breaking open locks of doors, lockers, safes, or receptacles where keys are not available, after allowing reasonable opportunity to produce the keys. The officer may also open or dismantle furniture or structures if required for the search.
- Power to Conduct Personal Search
Section 132(1)(iia) empowers the officer to search any person present in, entering, or leaving the premises if there is reason to suspect possession of undisclosed books or assets.
- No separate warrant is required.
- Search of a woman must be conducted only by a woman officer.
- A list of items taken must be prepared and copies provided to the individual and relevant authorities.
- Inspection of Electronic Records
Section 132(1)(iib) authorises the officer to require necessary facility for inspection of electronic books or documents. The person in possession must provide access, including passwords or software required.
- Restoration of Deleted Data
Deleted electronic data may be retrieved using specialised tools. Presumptions under Sections 132(4A) and 292C apply unless rebutted by the person searched.
- Power to Seize
Section 132(1)(iii) permits seizure of books, documents, money, bullion, jewellery, or other valuable articles or things found during search, except stock-in-trade.
- Only material relevant to proceedings or covered by the warrant may be seized.
- Stock-in-trade cannot be seized; only inventory may be prepared.
- Power to Pass Restraint Order
Where physical seizure is impracticable due to size, weight, or nature of the asset, the officer may issue a restraint order under the second proviso to Section 132(1) read with Rule 112(4C) . This prohibits removal or dealing with the asset and is not considered a seizure.
- Power to Place Identification Marks
Section 132(1)(iv) empowers placing identification marks and making copies or extracts of any books or documents, including those not covered in summons or notices.
- Power to Prepare Inventory of Assets
Under Section 132(1)(v), the officer may prepare a note or inventory of assets, including cash or stock-in-trade, found during search to facilitate verification of their source during assessment.