Section 489: presumption as to assets, books of account, etc., in prosecution

Introduction

Section 489 makes the section 247(7) evidentiary presumption available, so far as applicable, when seized or requisitioned assets, books, documents or electronic information are tendered by the prosecution in an offence case.

Key takeaways

What the section covers

Where, during a search under Section 247, money, bullion, jewellery, a virtual digital asset or other valuable article or thing, or books of account, documents, or information in electronic form or on a computer system (as defined in Section 261), is found in the possession or control of a person, and that material is tendered by the prosecution as evidence against that person (or against that person and a person referred to in Section 484) for an offence under the Act, the presumption in Section 247(7) applies, so far as may be, to that material.

The same presumption applies where the material was instead taken into custody under a requisition (Section 248(1)(a), (b) or (c)) and delivered to the requisitioning officer, and is likewise tendered as evidence in a prosecution.

When this provision applies

Identify the precise route by which the prosecution obtained the material: a Section 247 search, or the custody and delivery process under Section 248. The material must be linked to the person’s possession or control and tendered against the person, or that person together with the person referred to in Section 484, in the circumstances described here.

Read the particular Section 247(7) presumption being invoked. Ownership, truth of contents, handwriting, execution and electronic exchange are distinct propositions; the relevant item and proposition should be identified rather than treating the entire collection as a single admission.

Limits and procedural safeguards

Section 247(7) uses “may be presumed”, and Section 489 applies it “so far as may be”. This is not wording that automatically establishes guilt of the charged offence merely because a document was found.

Keep this prosecution rule separate from Section 524’s provision for proceedings under the Act. A survey record does not become Section 489 search evidence merely because Section 524 separately refers to surveys.

Step-by-step review

1. Match each exhibit to the search inventory or requisition and delivery records.

2. Identify the person against whom it is tendered and the prosecution proceeding concerned.

3. Specify the Section 247(7) proposition said to follow from the exhibit.

4. Preserve the contemporaneous explanation and supporting provenance, and address the actual evidentiary issue in the proceeding.

Hypothetical example

Hypothetical illustration: an electronic ledger found in a person’s control during a Section 247 search is later tendered by the prosecution against that person. The Section 247(7) presumption may become relevant through Section 489. The source, contents and alleged offence must still be identified; possession does not by itself pronounce a conviction.

Records to prepare

Search inventory or requisition and delivery documents identifying the item.

The exhibit and prosecution record showing against whom it is tendered.

Original records, access information and contemporaneous supporting evidence relevant to the disputed proposition.

Official amended Act source

• Income-tax Act, 2025 as amended by Finance Act, 2026: Section 489 and related provisions

Step-by-step flow for applying Section 489

1. 1

   How did the material come to light?

   Section 489(1): assets, books, documents, electronic information or a computer system found in a person's possession or control during a search under section 247. Section 489(2): such material taken into custody by an officer or authority under section 248(1)(a), (b) or (c) and delivered to the requisitioning officer under section 248(2).

   • Neither route: Section 489 does not apply.
   • Search or requisition: Go to the next step.
2. 2

   Is the prosecution tendering it in evidence for an offence under the Act?

   Against the person from whom it was found or taken, or against that person and the person referred to in section 484.

   • No: Section 489 does not apply.
   • Yes: Go to the next step.
3. 3

   Apply section 247(7), so far as may be

   It may be presumed that the material belongs to that person, that its contents are true, that handwriting and signatures are of the person they appear to be of, that stamped, executed or attested documents were duly so, and that electronic exchanges between parties took place between them.

4. 4

   Respond to the presumption

   Section 247(7) says these matters "may be presumed". The accused can lead evidence to show, for example, that a document belongs to someone else or that its contents are untrue.

Practical checklist

Glossary

Tendered in evidence

Presented by the prosecution for use in an offence proceeding under the Act.

Requisitioning officer

The officer to whom custody of material is delivered under section 248 for the second route in section 489.

Evidentiary proposition

The particular fact, such as ownership or truth of contents, for which a statutory presumption is invoked.

Frequently asked questions