Search and Seizure_Final (1)

8/13/2019 Search and Seizure_Final (1)

1/14

* SECTION 132 (1)

REASONS FOR INCOME TAX

SEARCH


2/14

According to the provisions of Section 132(1), an Income Tax search can be ordered by

a competent I.T. Authority who in consequence of information in his possession, hasreason to believethat -

(a) Any person to whom a summon u/s 131(1) of the Income Tax Act or a notice u/s142 (1) of this Act was issued to produce, or cause to be produced any, books of

account or other documents has omitted or failed to produce, or caused to be produce,

such books of accounts or other documents as required by such summon or notice, or

(b) Any person to whom a summon or notice as aforesaid has been or might be issued,will not, or would not, produce or cause to be produced, any books of account or other

documents which will be useful for or relevant to, any proceedings under the Income

Tax Act, or

(c) Any person is in possession of any money, bullion, jewellery or other valuable

articles or thing and such money, bullion, jewellery or other valuable article or thing

represents either wholly or partly income or property, which has not been or would not

been, disclosed for the purposes of the Income- Tax Act.


3/14

* TIPS AND CHECK LIST:WHEN THE SEARCH PARTY ARRIVES

1. No Panic:-

Take it easy.

Respect the search party as they are on their official duty.

They have come to collect information and evidence.

They are not to deliver judgment.

2. Inspect The Search Warrant :-

Taxpayers charter allows.

Ensure that it relates to you and your premises.

Check, whether completely and correctly filled up.

Do not allow the ingress, if any material defect.

Talk to your consultant for any clarity.


4/14

3. Identity of each member:-

Taxpayers Charter allows.

You can and you must verify the identity of each member of search party.If no satisfactory proof of identity assessee may refuse his entry.

4. Personal search of the Search Party :-

Taxpayers Charter allows. You may and should make personal search off all the members of the search.

party and their belongings before commencement and after completion of.search.

5. Witnesses :-


Call at-least 2 respectable witnesses.

Object if any of the witnesses called by the search party is unacceptable.


5/14

6. Signing the search warrant :-

It is not a mere formality.It is a license to allow them ingress.

7. Allow Ingress :-

This is beginning of the actual search.


6/14

TIPS AND CHECKLIST:

DURING THE CONTINUATION

OF THE

SEARCH


7/14

1. Be Vigilant :-

While attending to and serving the large search team, you are the king as well

as guard of your premises and properties.

2. Call your counsel :-

Assesse may call his legal advisor during the search.

3. Call your doctor :-


Assessee may call medical practitioner if he is not well or an emergency.

4. Call your Key Personnel :-

Assesse may seek permission to call his key personnel to assist him during the

course of search.


8/14

5. Have medicines in time :-

Jaan hai to jahan hai

6. Food :-Taxpayers Charter allows.

Assesse has right to have meals at his normal time.

7. Pooja :-

Assesse has right to worship at his normal time.

8. Send children to school :-

Assesse have right to have his children permitted to go to school after the.

examination of their bags.

9. Attend calls :-

Assesse may receive or make telephone calls and telex messages.


9/14

10. Cooperate :-

Fully cooperate with search party and let them do their job.

11. Records on computer :-Provide all the necessary facilities for inspection and obtaining andinformation from the records maintained on computers/ need be, call theconcerned person.

12. Be assertive and keep reflexes low :-

Explain the facts and circumstances assertively, but not aggressively.

Dont loose patience.

Remain calm, cool and pleasant.

13. Dont React, respond:-

Be receptive.

Keep track of your reactions and even body language.


10/14

TIPS AND CHECKLIST:

WHEN THE SEARCH PARTY

RECORDS STATEMENT


11/14

1. Statement on oath :-

It is a double edged weapon, since admissible as evidence.

2. Tips and traps :-

Understand the queries carefully.

Seek clarity by asking counter questions.

Dont answer the questions recklessly.

Dont repeat I do not remember or I do not know for each and every

question.

Take it as an opportunity of explaining several items of assets found during

the search and not as a trap.

Take help of the books of account and other documents and give all the

possible information, which is readily available.

If it is not possible to remember certain facts with accuracy, particularly

those of several past years, the assesse may only explain their nature and

should furnish the details later on after looking in to record.


12/14

3. Have rest before statement :-

Assesse may insist that he will give statement only after taking proper rest.

4. Counsel not allowed to interfere :-

But, his presence will a moral booster.

5. Note Down :-Note the proceedings, questions and answers at the time of the recording of

a statement.

6. Surrender of income :-

Surrender in statement may avoid penalty.

Look for a win win outcome - where needs and concerns of both are

addressed.


13/14

7. Last question in the statement Do you want to say anything?

Say everything you consider necessary,

Object if any books of account, documents, assets etc. are brought from other

places to enable seizure.Seizure of disclosed assets.

Special circumstancessay

*Your request to call your accountant, computer operator was not acceded.

*Your statement was recorded when you were exhausted.

8. Verify the correctness :-

Taxpayers charter allows.

Ensure that th3 facts stated have been recorded correctly.

Object to the irregularity in the conduct of the search, if any, and record such

objections in writing.

9. Sign the statement :-

Sign it after verification.


14/14

THANKYOU

Documents

Search and Seizure_Final (1)