Search Warrant
Introduction
A search warrant under Section 132 of the Income-tax Act enables tax authorities to conduct a search when there is credible information and a recorded “reason to believe” that a person has failed to comply with summons or notices or is in possession of undisclosed income or assets. The warrant must be issued in writing, bear the signature and seal of the issuing authority, and state the name of the person and the premises to be searched.
When a Search Warrant May Be Issued
A warrant for search may be issued only when the competent authority, based on information, forms a reason to believe that circumstances specified in Section 132(1) exist, namely:
- failure or likely failure to comply with summons under Section 131(1) or notice under Section 142(1); or
• possession of undisclosed income or assets.
Persons Against Whom a Warrant May Be Issued
A warrant may be issued against any person falling within Section 132(1) where reason to believe has been formed.
- The person may hold assets as owner or in any other capacity, such as an agent or employee.
• A warrant in the name of an agent or employee may be issued only where the identity of the actual owner cannot be established.
Warrant Against Owner or Person in Possession
A search warrant is issued in the name of the person in possession of undisclosed assets, even if ownership rests with another person.
- The authorising officer must have recorded reason to believe, based on credible information, that such person is in possession of undisclosed assets.
• Assessment of income relating to seized assets is made in the hands of the true owner once established.
Search Warrant in Joint Names
Section 292CC provides that:
- a search warrant may contain names of more than one person;
• such warrant shall not be construed as authorisation issued in the name of an association of persons or body of individuals; and
• assessments or reassessments shall be made separately for each person named in the warrant.
Manner of Drawing Search Warrant
- Authorisation in Writing
A warrant must be issued in writing with signature and seal of the issuing authority in the prescribed form:
- Form 45– authorisation under Section 132(1) by jurisdictional authorities;
- Form 45A– authorisation under the first proviso to Section 132(1) by non-jurisdictional authorities;
- Form 45B– authorisation under Section 132(1A) for searching places not mentioned in the original warrant.
- Mandatory Particulars
The warrant must clearly mention:
- name of the person against whom it is issued; and
- address of every premise authorized to be searched.
Merely mentioning the name or the address alone is insufficient.