Requisition under Section 132A – Condensed Version (No Line Spacing)
Introduction
Section 132A empowers income-tax authorities to requisition books of account, documents, or assets from other government authorities. Once delivered, such material is treated as seized under Section 132, and all related search provisions apply to the person to whom the requisitioned assets belong. Assessments are made under Section 158BC as in the case of a search.
Scope and Purpose of Section 132A
This provision allows the Income Tax Department to take delivery of incriminating material seized by any other authority under any law. It is an overriding power that enables requisition without requiring orders from other authorities. After delivery, the original custodian is treated as searched under Section 132.
Authorities Empowered to Authorise Requisition
The following officers may authorise requisition upon having reason to believe that required conditions exist: Principal Director General, Director General, Principal Director, Director, Principal Chief Commissioner, Chief Commissioner, Principal Commissioner, or Commissioner. They may authorise Additional/Joint/Assistant/Deputy Directors or Commissioners and Income-tax Officers to execute the requisition. Reasons recorded cannot be disclosed except before constitutional courts if directed.
Circumstances in Which Requisition May Be Authorised
Requisition may be authorised when:
- A person fails to produce books or documents required by summons under Section 131(1) or notice under Section 142(1);
- A person possesses assets representing wholly or partly undisclosed income;
- Such books, documents, or assets are in custody of another authority, and the competent officer has reason to believe they represent undisclosed income.
Requisition cannot be issued mechanically; the competent authority must satisfy the existence of conditions similar to those for authorising a search.
Procedure for Issuing Requisition
Authorisation is issued in Form 45C under the signature and seal of the competent authority. The requisitioning officer issues a written requisition to the delivering officer, accompanied by a copy of the authorisation. A copy is also forwarded to the person to whom the assets belong. Non-service on the assessee does not invalidate the requisition. Requisition may be made to any officer or authority under any law.
Handling and Delivery of Requisitioned Material
The delivering officer prepares a list of books, documents, or assets being handed over. Bullion, jewellery, or valuables must be sealed in a package with identification marks of both officers, and the assessee may place his seal. Copies of the list are supplied to the assessee and sent to superior authorities. The Custodian ensures safe custody and may deposit valuables in authorised banks or treasury. Packages may be opened by the authorised officer in the presence of witnesses after notice to the assessee.
No Limitation Period for Delivery
There is no time limit for other authorities to deliver requisitioned materials. They must deliver such items either immediately or once retention is no longer required for proceedings under their respective laws.
Applicability of Search Provisions
Upon delivery, the requisitioned material is treated as seized under Section 132(1). Sections 132(4A)–(14) and Section 132B apply, covering legal presumptions, retention and release of documents, obtaining copies, handing over material to the Assessing Officer, provisional attachment, valuation, objections to retention, applicability of CrPC search rules, powers under Rule 112 , and application of seized or requisitioned assets.
Search Provisions Not Applicable to Requisition
Certain provisions applicable to search do not apply to requisition, namely:
Section 271AAB (penalty for undisclosed income), Section 132(2) (use of police services), Section 132(3) (restraint orders), and Section 132(4) (recording of statements). There is no provision requiring the assessee’s explanation before issuing a requisition.
Correspondence Between Search and Requisition Dates
For determining block period and procedural timelines under Section 158BC, corresponding dates are aligned as follows:
– Date of search warrant = date of requisition authorisation;
– Commencement of search = date of serving requisition;
– Conclusion of search = date of receiving last delivery of requisitioned material;
– Period of search = period from serving requisition until actual delivery.
Although delivery may occur much later, the block period is determined with reference to the date of requisition, not the date of actual delivery.
Assessment of Other Person
Persons whose assets are requisitioned are treated as if searched under Section 132. Assessments are made under Section 158BC for the block period of six assessment years preceding the year in which the requisition is made, irrespective of the delay in actual delivery. Notices are issued accordingly, and assessments are completed following the law applicable to search cases.
Release of Assets
Under Rule 112C , any surplus assets or sale proceeds remaining after liabilities are discharged must be released to the person from whose custody the assets were seized, in the presence of two witnesses.