Chapter XXII - Offences and Prosecution
Section 473
Section 473: contravention of an order made during search action
Section 473 opens Chapter XXII (Offences and Prosecution). It addresses contravention of an order under Section 247(4) that restricts a person from removing, parting with or otherwise dealing with specified articles, documents, assets, accounts or computer systems without the authorised officer's prior permission.
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Need advice on Section 473?
This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Whoever contravenes any order referred to in section 247(4) shall be punishable with simple imprisonment up to two years and with fine.
Introduction
Section 473 punishes contravention of an order referred to in section 247(4) during search action. The Finance Act, 2026 changed the punishment to simple imprisonment up to two years and fine.
Key takeaways
Specific order
The prosecution must identify the section 247(4) order allegedly contravened.
Current punishment
The amended text states simple imprisonment up to two years and fine.
Related but distinct
Section 474 separately addresses failure to afford inspection facilities.
What the section says
Whoever contravenes any order referred to in Section 247(4) is punishable with simple imprisonment for a term up to two years, and with fine.
This is the current text, substituted by the Finance Act, 2026 with effect from 1 April 2026. Before that amendment, the punishment was rigorous imprisonment up to two years and fine, and the section's own heading read "Contravention of order made under section 247" - so if you've seen the older, harsher wording elsewhere, note that it has since been softened to simple imprisonment.
When this provision applies
Start with the actual Section 247(4) order, the property or records it covers and the allegedly prohibited dealing. The offence is tied to that order, rather than to every disagreement during a search.
Section 247(4) contains distinct order types. The physical-characteristics branch in clause (a) is deemed seizure; clause (b) is a different restraint where seizure is impracticable for other reasons and is not deemed seizure.
Limits and procedural safeguards
The sixty-day limit stated in Section 247(4)(b)(ii) belongs to the clause (b) order. Do not apply it indiscriminately to every action under Section 247(4).
Both branches describe restrictions subject to the authorised officer’s previous permission. Retain the actual permission before relying on it to deal with covered property.
Section 491 requires previous sanction for prosecution under Section 473. The section states a maximum simple-imprisonment term of two years and fine; it does not impose a fixed two-year sentence automatically.
Step-by-step review
1. Obtain the order and identify whether Section 247(4)(a) or (b) is relied upon.
2. Record its addressee, covered items, service, operative period and any previous permission.
3. Compare the alleged act and its timing with the precise restriction.
4. For prosecution proceedings, review the sanction and relevant evidence with professional assistance.
Hypothetical example
Hypothetical: an order under Section 247(4)(b) restricts dealing with a specified bank account. Before moving funds, the person should establish the order’s operative position and obtain the authorised officer’s previous permission where required. A later explanation should not be treated as equivalent to that prior permission.
Records to prepare
Keep the order, service record, item or account identification and any written permission.
Preserve the chronology of the alleged dealing and the prosecution or sanction documents, if proceedings arise.
Official amended Act source
Step-by-step flow for applying Section 473
- 1
Was an order made under section 247(4) during a search?
Such an order may, for example, direct the person in possession not to remove, part with or otherwise deal with an asset, except with the authorised officer's previous permission.
- No: Section 473 does not apply.
- Yes: Go to the next step.
- 2
Is the order still in force on the date of the act?
Check the branch of section 247(4) under which it was made and any time limit in that branch.
- 3
Did the person contravene the order?
For example, by dealing with the asset without permission.
- No: No offence under Section 473.
- Yes: Go to the next step.
- 4
Punishment on conviction
Simple imprisonment up to two years and fine. This is a criminal offence decided through prosecution, not a penalty imposed by the Assessing Officer.
Practical checklist
Do
- Identify the specific order referred to in section 247(4) and the conduct alleged to contravene it.
- Check the post-2026 punishment wording before comparing an older notice or commentary.
- Keep the order, service record, item or account identification and any written permission.
- Preserve the chronology of the alleged dealing and the prosecution or sanction documents, if proceedings arise.
Avoid
- Do not apply the former rigorous-imprisonment wording to the amended provision.
Illustrative example
Worked example: moving goods under a restraint order
Hypothetical facts (illustration only, not a real taxpayer): During a search, the authorised officer serves an order under section 247(4) on a warehouse owner. The order says not to remove or deal with a heavy machine (not stock-in-trade of his business) that cannot practicably be taken away. A week later, without permission, the owner sells and moves the machine. The facts are assumed.
Order
The order is under section 247(4). Under section 247(4)(a)(ii), the action is deemed to be a seizure.
In force
The sale was a week after the order was served, so the order was still in force. The order had not been lifted.
Contravention
Selling and moving the machine without the previous permission of the authorised officer contravenes the order.
Consequence
The owner may be prosecuted. On conviction, the punishment is simple imprisonment up to two years and fine.
Outcome
- The owner faces prosecution under Section 473.
- Any dealing with the asset should be done only with the authorised officer's written permission.
Glossary
- Restraint order
- An order restricting removal, parting with or other dealing with the specified subject matter under Section 247(4).
- Previous permission
- Permission of the authorised officer obtained before the otherwise restricted dealing.
Frequently asked questions
What order does Section 473 relate to?
An order referred to in Section 247(4), issued by an authorised officer during a tax search.
What is the punishment for contravening this order?
Simple imprisonment for a term up to two years, and fine, under the current (Finance Act, 2026 amended) text.
Was the punishment always this?
No - before the Finance Act, 2026 amendment (effective 1 April 2026), the punishment was rigorous imprisonment up to two years and fine, which the amendment softened to simple imprisonment.
Does every Section 247(4) action expire after sixty days?
The express sixty-day limit is in clause (b)(ii). First identify which statutory branch supports the actual order instead of applying that limit to all search actions.
Is the two-year term automatic?
No. The section specifies simple imprisonment up to two years and fine. Criminal liability and sentence require the applicable prosecution and adjudication process.
Need help applying this provision to your situation?
Get help if you're facing search-related proceedingsLast updated 10 October 2026