Section 246
Section 246: power regarding discovery, production of evidence, etc
Section 246 gives designated income-tax authorities the same powers a civil court has when trying a suit - covering discovery and inspection, summoning and examining witnesses under oath, compelling production of documents, and issuing commissions - along with the power to impound documents produced before them.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
Civil-court powers
The Assessing Officer, Joint Commissioner, Joint Commissioner (Appeals), Commissioner (Appeals), Commissioner or Principal Commissioner, Chief Commissioner or Principal Chief Commissioner, and the Dispute Resolution Panel referred to in Section 275(17)(a), have the same powers as a court under the Code of Civil Procedure, 1908 when trying a suit, in respect of: discovery and inspection; enforcing attendance of any person (including a banking company officer) and examining them on oath; compelling production of books of account and other documents; and issuing commissions.
Exercise of these powers without pending proceedings
These powers may also be exercised - even where no proceeding is pending before that or any other income-tax authority - by:
- Any income-tax authority not below the rank of Assistant Commissioner, notified by the Board, for inquiry or investigation into an agreement referred to in Section 159
- The Principal Director General/Director General, Principal Director/Director, or Joint/Assistant Director, for inquiry or investigation into suspected concealment of income within their jurisdiction
- The authorised officer referred to in Section 247(1), before or during action under Section 247(1)(i) to (vii), where there is reason to suspect concealment of income
Impounding documents
An income-tax authority exercising these powers may, subject to prescribed rules, impound and retain in custody any books of account or other documents produced before it in a proceeding under the Act, for such period as it thinks fit.
The Assessing Officer or Assistant Director must record reasons for impounding books of account or documents, and may retain them for up to fifteen days (excluding holidays), or longer with the prior sanction of the approving authority.
Frequently asked questions
Can income-tax authorities examine a bank officer under oath?
Yes - Section 246(1)(b) gives the specified authorities the civil court power to enforce attendance of any person, including an officer of a banking company, and examine them on oath.
How long can impounded books of account be retained?
Up to fifteen days, excluding holidays, unless a longer period is sanctioned by the prior approval of the approving authority - and the officer must record reasons for the impounding.
Do these powers require an ongoing assessment proceeding?
Not always - certain notified authorities can exercise these powers purely for inquiry or investigation into suspected concealment of income, or in connection with certain agreements, even without a proceeding pending before any income-tax authority.
Related sections
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Talk to our tax team about an income-tax inquiry or summonsLast updated 9 September 2026