Section 247 — Search and seizure

(1) Where the competent authority, in consequence of information in his
possession, has reason to believe that—
( a) any person to whom a summons under section 131(1) or a notice under
section 142(1) of the Income-tax Act, 1961 (43 of 1961) or summons
under section 246(1) or a notice under section 268(1) of this Act,––
( I) was issued to produce, or cause to be produced, any books of account
or other documents, or any information in electronic form or on
a computer system, has omitted or failed to produce, or cause to
be produced, such books of account or other documents or such
information as required by such summons or notice; or
( II) has been issued or might be issued, will not, or would not, produce
or cause to be produced, any books of account or other documents,
or any information in electronic form or on a computer system
which will be useful for, or relevant to, any proceedings under the
Income-tax Act, 1961 (43 of 1961) or this Act; or
( b) any person is in possession of any asset or information in relation to
any asset and such asset represents either wholly or partly, income
or property which has not been, or would not be, disclosed, for the
purposes of the Income-tax Act, 1961 (43 of 1961) or the Black
Money (Undisclosed Foreign Income and Assets) and Imposition of
Tax Act, 2015 (22 of 2015) or this Act (hereinafter referred to as the
undisclosed income or property),
then the approving authority may authorise any Joint Director or Joint
Commissioner or Assistant Director or Assistant Commissioner or Income-tax
Officer, or any Joint Director or Joint Commissioner, so authorised, may
authorise any Assistant Director or Assistant Commissioner or Income-tax Officer,
(the officer so authorised in all cases being herein referred to as the authorised
officer) to––
( i) enter and search any building, place, vessel, vehicle, aircraft where he
has reason to suspect that such assets, books of account or other docu-
ments, or such information in electronic form or on a computer system
are kept;
( ii) require any person, who is found to be in possession or control of any
books of account or other documents maintained in the form of elec -
tronic record or any information in electronic form or on a computer
system, to afford the authorised officer with such reasonable technical
and other assistance (including access code, by whatever name called) as
may be necessary to enable the authorised officer to inspect such books
of account or other documents or such information;
( iii) break open the lock of any door, box, locker, safe, almirah, or other
receptacle or override the access code to any computer system for
exercising the powers conferred by clause ( i) where the keys thereof
are, or the access to such building, place, etc., or the access code to such
computer system, as the case may be, is not available;
( iv) search any person who has got out of, or is about to get into, or is in, the
building, place, vessel, vehicle or aircraft, if the authorised officer has
reason to suspect that such person has secreted about his person any
such books of account, other documents, any information in electronic
form, or a computer systems or asset;
( v) place marks of identification on any books of account or other documents,
or make or cause to be made extracts or copies therefrom and also from
computer system;
( vi) make a note or an inventory of any such asset, and stock-in-trade of the
business, found as a result of such search;
( vii) seize any such books of account, other documents, computer systems
or asset (other than stock-in-trade of the business), found as a result of
such search.
(2) If any building, place, vessel, vehicle or aircraft referred to in sub-section (1)(i)
is within the area of jurisdiction of any Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner, but such income-tax
authority has no jurisdiction over the person referred to in sub-section (1)(a) or (b),
then, irrespective of the fact that he has no jurisdiction, it shall be competent for
such income-tax authority to exercise the powers under sub-section (1), where he
has reason to believe that any delay in getting the authorisation from the Principal
Chief Commissioner or Chief Commissioner or Principal Commissioner or Com -
missioner having jurisdiction over such person may be prejudicial to the interests
of the revenue.
(3) If any Principal Chief Commissioner or Chief Commissioner or Principal Com-
missioner or Commissioner, in consequence of information in his possession, has
reason to suspect that any books of account, other documents, or any information
in electronic form or on a computer system, or asset in respect of which an officer
has been authorised by the competent authority to take action under sub-sections
(1)(i) to ( vii) are or is kept in any building, place, vessel, vehicle or aircraft not
mentioned in the authorisation under sub-section (1), then such Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner or Commissioner
may, irrespective of anything contained in section 241, authorise the said officer to
take action under any of the sub-sections (1)(i) to (vii) in respect of such building,
place, vessel, vehicle or aircraft.
(4)(a)(i) The authorised officer may serve an order on the owner or the person, who
is in immediate possession or control of any valuable article or thing, other than
stock-in-trade of the business not to remove, part with or otherwise deal with it,
except with the previous permission of such authorised officer, where it is not pos-
sible or practicable to take physical possession of such valuable article or thing and
remove it to a safe place due to its volume, weight, or other physical characteristics
or due to its being of a dangerous nature; and
(ii) such action of the authorised officer shall be deemed to be seizure of such valu-
able article or thing under sub-section (1)(vii);
(b)(i) the authorised officer may, where it is not practicable to seize, any books of
account, other documents, asset, bank locker, bank account, or computer system, for
reasons other than mentioned under clause (a), serve an order on the owner or the
person who is in immediate possession or control thereof, not to remove, part with
or otherwise deal with it except with the previous permission of such officer and
such authorised officer may also take such steps as may be necessary for ensuring
compliance with this clause;
(ii) such order shall not remain in force for a period exceeding sixty days from the
date of the order; and
(iii) serving of such order shall not be deemed to be seizure of such books of
account, other documents, asset, bank locker, bank account or computer system
under sub-section (1)(vii).
(5) The authorised officer may requisition the services of,—
( a) any police officer or any officer of the Central Government, or of both;
or
( b) any person or entity as may be approved by the Principal Chief Com -
missioner or the Chief Commissioner or the Principal Director General
or the Director General, in accordance with such procedure, as may be
prescribed, in this regard,
to assist him for all or any of the purposes specified in sub-sections (1) and (3) and
it shall be the duty of every such officer or person or entity to comply with such
requisition.
(6) The authorised officer may, during the course of any search or seizure, examine
on oath any person who is found to be in possession or control of any books of
account or other documents, or asset, or any information in electronic form or on
a computer system or having access to such computer system or any other person
who is present in the premises or is being searched, and––
( a) any statement made by such person, during such examination may
thereafter be used in evidence in any proceeding under the Income-tax
Act, 1961 (43 of 1961) or this Act; and
( b) the examination of any such person may not be merely in respect of any
books of account or other documents, or any information in electronic
form or on a computer system, or assets found as a result of the search,
but also in respect of all matters relevant for the purposes of any inves-
tigation connected with any proceeding under the Income-tax Act, 1961
(43 of 1961) or this Act.
(7) Where any person is found to be in possession or control of any books of
account or other documents, or asset, or any information in electronic form or on
a computer system, or having access to such computer system in the course of a
search, it may be presumed—
( a) that such books of account or other documents, or such information or
asset or computer system belong or belongs to such person;
( b) that the contents of such books of account or other documents, or such
information or computer system are true;
( c) that the signature and every other part of such books of account or other
documents which purport to be in the handwriting of any particular
person or which may reasonably be assumed to have been signed by, or
to be in the handwriting of, any particular person, are in the handwriting
of that person;
( d) in the case of such document stamped, executed or attested, that it was
duly stamped and executed or attested by the person by whom it purports
to have been so executed or attested; and
( e) that exchange of such information in electronic form, or on such
computer system purported to be exchanged between any parties, is
exchanged between the parties thereto.
(8) The authorised officer may, by order in writing, provisionally attach any property
belonging to the assessee, during the course of the search or seizure, or within a
period of sixty days from the date of execution of the last of the authorisations for
the search and such provisional attachment shall––
( a) be made, if the authorised officer is satisfied, after recording the reasons
in writing, that it is necessary to do so in the interest of the revenue, with
the prior approval of Principal Director General or Director General or
the Principal Director or Director; and
( b) be valid for six months from the end of the month in which the order of
provisional attachment is made, and the rules in this behalf made under
section 413 shall, mutatis mutandis, apply to such provisional attachment.
(9) The authorised officer may, during the course of the search or seizure, or within
sixty days from the date on which the last of the authorisations for search was exe-
cuted, make a reference to a Valuation Officer, or any person registered as a valuer
under section 514, or any person or entity registered by or under any law in force, as
may be approved by the Principal Chief Commissioner or the Chief Commissioner
or the Principal Director General or the Director General, in accordance with the
procedure as may be prescribed in this regard, requiring him to—
( a) estimate the fair market value of the property in the manner, as may be
prescribed; and
( b) submit a report of the estimate to the authorised officer or the Assessing
Officer, within sixty days from the date of receipt of such reference.
(10) The provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023)
relating to searches and seizure shall apply, so far as may be, to search and seizure
under this section.
(11) The Board may make rules in relation to any search or seizure under this section
including providing for the procedure to be followed by the authorised officer—
( a) for obtaining ingress into any building, place, vessel, vehicle or aircraft
to be searched where free ingress thereto is not available; and
( b) for ensuring safe custody of any books of account or other documents,
or asset, or any information in electronic form or on a computer system,
or computer system seized.
(12) For the purposes of this section, the word “proceeding” means any proceeding
in respect of any year, whether under the Income-tax Act, 1961 (43 of 1961), or this
Act, which may be pending on the date on which a search is authorised under this
section or which may have been completed on or before such date and includes
also all proceedings under this Act which may be commenced after such date in
respect of any year.