Survey under Section 133A
Introduction
Section 133A empowers income-tax authorities to conduct surveys for collecting information and verifying tax compliance. Surveys are less intrusive than searches and allow inspection of books, marking of documents, recording statements, and verification of cash and stock. Authorities cannot seize assets during a survey, nor can they convert a survey into a search without conditions prescribed under Section 132.
Scope of Survey and Investigative Powers
A survey may be conducted at any place where business, profession, or charitable activity is carried on, or where books, documents, cash, stock, or valuables are kept. Authorities may inspect books and documents, make copies, mark them for identification, verify stock and cash, and record statements. Surveys assist in gathering information for assessment or reassessment proceedings.
Authorities Empowered to Authorise and Conduct Surveys
Approval to conduct a survey must be obtained from the Principal Director General, Director General, Principal Chief Commissioner, or Chief Commissioner. Surveys may be conducted by Principal Commissioners, Commissioners, Directors, Joint/Assistant/Deputy Directors, Assessing Officers, and Tax Recovery Officers. Inspectors may conduct surveys only for inspection, marking documents, making extracts, or verifying expenditure at functions or events.
Jurisdiction for Conducting Survey
For verification and information collection, authorities may enter premises within their assigned area, premises of persons over whom they exercise jurisdiction, or premises authorised by competent authorities. For TDS/TCS verification, authorities may enter any premises within their area or those specifically authorised for such purposes.
Places Where Survey May Be Conducted
A survey may be conducted at any business premises or other location where books, documents, cash, stock, or valuables relating to business or charitable activity are kept. For TDS/TCS verification, surveys may be conducted at offices or any places where relevant documents are kept.
Obligations of the Person in Charge
Persons present during the survey must provide access to books and documents, permit verification of cash and stock, and furnish information required for proceedings under the Act. For TDS/TCS matters, deductors or collectors must provide access to books and furnish relevant information.
Timing of Survey
For general surveys, entry is permitted only during business hours when the premises are open. For TDS/TCS surveys, entry is permitted only after sunrise and before sunset.
Powers of Survey Authorities
Authorities may place identification marks on books, make extracts or copies, impound and retain books after recording reasons, and retain them for more than 15 days only with approval of higher authorities. They may inventory cash, stock, or valuables but cannot remove them. They may record statements relevant to proceedings. For TDS/TCS verification, authorities may mark books, make extracts, and record statements. For verification of expenditure on functions or events, authorities may require information and record statements after the event has concluded.
Power to Issue Summons
If a person refuses to afford the required facilities or furnish information, authorities may issue summons under Section 131(1) for enforcing attendance, compelling production of documents, discovery and inspection, and issuing commissions. Failure to comply may justify initiating search proceedings subject to statutory conditions.
Conversion of Survey into Search
A survey cannot be converted into a search unless conditions for search under Section 132 are satisfied and a search warrant is obtained based on recorded “reason to believe.” Survey teams cannot initiate search on their own.
Difference between Search and Survey
Surveys may be conducted only at business premises, whereas searches may extend to residential premises. Surveys cannot involve seizure of assets, though books may be impounded; searches permit seizure of undisclosed assets. Searches require recorded “reason to believe,” while surveys do not. Surveys occur during business hours; searches have no such limitation. Statements during search are recorded on oath and have higher evidentiary value. Searches mandate block assessments under Section 158BC; surveys do not.