Section 247: search and seizure

When a search can be authorised

The competent authority may authorise a search where, on information in its possession, it has reason to believe either of the following:

• A person summoned or given notice to produce books of account, documents or electronic information has omitted or failed to produce them, or is not expected to produce them if asked; or
• A person is in possession of an asset or information about an asset that represents income or property that has not been, or would not be, disclosed for tax purposes.

What the authorised officer can do

Once authorised, the officer may:

• Enter and search any building, place, vessel, vehicle or aircraft suspected of holding the assets, books or information
• Require technical assistance (including access codes) to inspect electronic records or computer systems
• Break open the lock of any door, box, locker, safe or almirah, or override a computer system's access code, where the keys or access are not available
• Search any person entering, leaving or present at the place, if suspected of concealing books, documents, information or assets on their person
• Place identification marks on books/documents and make or take extracts or copies, including from a computer system
• Make a note or inventory of assets and stock-in-trade found
• Seize books of account, documents, computer systems or assets found (other than stock-in-trade of the business)

Jurisdiction and cross-authorisation

An income-tax authority with jurisdiction over a place, but not over the person being investigated, can still act under this section if delay in getting proper authorisation would prejudice the interests of the revenue.

If, during a search, a Principal Chief Commissioner/Chief Commissioner/Principal Commissioner/Commissioner suspects that relevant books, documents or assets are kept at a place not mentioned in the original authorisation, that authority can extend the authorisation to cover that place as well.

Where physical seizure isn't practical

Where a valuable article or thing (other than stock-in-trade) cannot be physically removed due to its volume, weight or nature, the officer may instead serve a written order on the owner/possessor restraining them from removing, parting with, or dealing with it - this is deemed to be a seizure.

For books, documents, assets, bank lockers/accounts or computer systems that cannot practically be seized for other reasons, a similar restraint order may be served, but this order is not treated as a seizure and cannot remain in force for more than sixty days from the date of the order.

Assistance, statements and presumptions

The authorised officer may requisition the services of police officers, other Central Government officers, or approved persons/entities to assist with the search.

During the search, the officer may examine any person found in possession or control of relevant books, documents, assets or computer access, on oath - such statements can be used as evidence in proceedings under the Income-tax Act, 1961 or this Act.

Where a person is found in possession or control of books, documents, information or a computer system during a search, the law presumes (unless rebutted) that these belong to that person, that their contents are true, and that signatures/handwriting are genuine.

Provisional attachment and valuation reference

The authorised officer may, by written order, provisionally attach any property of the assessee during the search or within sixty days of the last search authorisation being executed, if satisfied (after recording reasons) that this is necessary in the interest of revenue and with prior approval of the Principal Director General/Director General or Principal Director/Director. Such attachment is valid for six months from the end of the month in which it is ordered.

The officer may also, during the search or within sixty days of it, refer the matter to a Valuation Officer or a registered valuer to estimate the fair market value of property, with a report due within sixty days of the reference.

Related procedural provisions

The search and seizure provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 apply, so far as relevant, to searches under this section.

The Board may make rules for the procedure to be followed for gaining entry where it isn't freely available, and for the safe custody of seized books, documents, information and assets.

"Proceeding" for this section covers any proceeding under the Income-tax Act, 1961 or this Act pending or completed on the date the search is authorised, and any proceeding commenced afterwards for that year.

Frequently asked questions