Section 132:
Search and seizure.
5(1) Where the 62
Principal Director General or Director General or
4
Principal Director or Director or the 71
Principal Chief Commissioner or Chief Commissioner or
3
Principal Commissioner or Commissioner 8
or Additional Director or Additional Commissioner 9or
Joint Director or Joint Commissioner in consequence of information in his possession, has reason to
believe that
(a) any person to whom a summons under sub-section (1) of section 37 of the Indian Income-tax
Act, 1922 (11 of 1922), or under sub-section (1) of section 131 of this Act, or a notice under
sub-section (4) of section 22 of the Indian Income-tax Act, 1922, or under sub-section (1) of
section 142 of this Act was issued to produce, or cause to be produced, any books of account or other
documents has omitted or failed to produce, or cause to be produced, such books of account or other
documents as required by such summons or notice, or
(b) any person to whom a summons or notice as aforesaid has been or might be issued will not,
or would not, produce or cause to be produced, any books of account or other documents which will
be useful for, or relevant to, any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or
under this Act, or
(c) any person is in possession of any money, bullion, jewellery or other valuable article or thing
and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly
income or property 10which has not been, or would not be, disclosed for the purposes of the Indian
Income-tax Act, 1922 (11 of 1922), or this Act (hereinafter in this section referred to as the
undisclosed income or property),
11then,
(A) the 62
Principal Director General or Director General or 4
Principal Director or Director or
the 71
Principal Chief Commissioner or Chief Commissioner or 3
Principal Commissioner or
Commissioner, as the case may be, may authorise any 12Additional Director or Additional Commissioner or 13
Joint Director, 14
Joint Commissioner, 15
Assistant Director or Deputy Director,
16
Assistant Commissioner or Deputy Commissioner or Income-tax Officer, or
(B) such 17
Additional Director or Additional Commissioner or 13
Joint Director, or 14
Joint
Commissioner, as the case may be, may authorise any 15
Assistant Director or Deputy Director,
16
Assistant Commissioner or Deputy Commissioner or Income-tax Officer,
(the officer so authorised in all cases being hereinafter referred to as the authorised officer) to
(i) enter and search any 18
building, place, vessel, vehicle or aircraft where he has reason to
suspect that such books of account, other documents, money, bullion, jewellery or other valuable
article or thing are kept;
(ii) break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising
the powers conferred by clause (i) where the keys thereof are not available;
19
(iia) 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, money, bullion, jewellery or other
valuable article or thing;
20
(iib) 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 electronic record as defined in clause (t) of sub-section (1)
of section 2 of the Information Technology Act, 2000 (21 of 2000), to afford the authorised officer
the necessary facility to inspect such books of account or other documents;
(iii) seize any such books of account, other documents, money, bullion, jewellery or other
valuable article or thing found as a result of such search:
21
Provided that bullion, jewellery or other valuable article or thing, being stock-in-trade of the
business, found as a result of such search shall not be seized but the authorised officer shall make a
note or inventory of such stock-in-trade of the business;
(iv) place marks of identification on any books of account or other documents or make or cause to
be made extracts or copies therefrom;
(v) make a note or an inventory of any such money, bullion, jewellery or other valuable article or
thing:
22
or Joint Director or Joint Commissioner to take action under clauses (i) to (v) of sub-section (1) are or
is kept in any building, place, vessel, vehicle or aircraft not mentioned in the authorisation under
sub-section (1), such 23
Principal Chief Commissioner or Chief Commissioner or 24
Principal
Commissioner or Commissioner may, notwithstanding anything contained in 25
section 120, authorise
the said officer to take action under any of the clauses aforesaid in respect of such building, place, vessel,
vehicle or aircraft.
26
Explanation.For the removal of doubts, it is hereby declared that the reason to suspect, as
recorded by the income-tax authority under this sub-section, shall not be disclosed to any person or any
authority or the Appellate Tribunal.
(2) The authorised officer may requisition the services of any police officer or of any officer of the
Central Government, or of both, to assist him for all or any of the purposes specified in sub-section (1)
27
or sub-section (1A) and it shall be the duty of every such officer to comply with such requisition.
(3) The authorised officer may, where it is not practicable to seize any such books of account, other
documents, money, bullion, jewellery or other valuable article or thing, 28
for reasons other than those
mentioned in the second proviso to sub-section (1), serve an order on the owner or the person who is in
immediate possession or control thereof that he shall not remove, part with or otherwise deal with it
except with the previous permission of such officer and such officer may take such steps as may be
necessary for ensuring compliance with this sub-section.
29
Explanation.For the removal of doubts, it is hereby declared that serving of an order as aforesaid
under this sub-section shall not be deemed to be seizure of such books of account, other documents,
money, bullion, jewellery or other valuable article or thing under clause (iii) of sub-section (1).
(4) The authorised officer may, during the course of the search or seizure, examine on oath any
person who is found to be in possession or control of any books of account, documents, money, bullion,
jewellery or other valuable article or thing and any statement made by such person during such
examination may thereafter be used in evidence in any proceeding under the Indian Income-tax Act, 1922
(11 of 1922), or under this Act.
29
Explanation.For the removal of doubts, it is hereby declared that the examination of any person
under this sub-section may be not merely in respect of any books of account, other documents or assets
found as a result of the search, but also in respect of all matters relevant for the purposes of any
investigation connected with any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or
under this Act.
27
(4A) Where any books of account, other documents, money, bullion, jewellery or other valuable
article or thing are or is found in the possession or control of any person in the course of a search, it may
be presumed
(i) that such books of account, other documents, money, bullion, jewellery or other valuable
article or thing belong or belongs to such person;
(ii) that the contents of such books of account and other documents are true; and
(iii) that the signature and every other part of such books of account and 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 that person's
handwriting, and in the case of a 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.
30
* * * * *
(8) The books of account or other documents seized under sub-section (1) 31
or sub-section (1A) shall
not be retained by the authorised officer for a period exceeding 32
thirty days from the date of the order of
assessment under 33
section 153A or clause (c) of section 158BC unless the reasons for retaining the
same are recorded by him in writing and the approval of the 3435
Principal Chief Commissioner or Chief
Commissioner, 36
Principal Commissioner or Commissioner, 37
Principal Director General or Director
General or 38
Principal Director or Director for such retention is obtained:
Provided that the 3435
Principal Chief Commissioner or Chief Commissioner, 36
Principal
Commissioner or Commissioner, 37
Principal Director General or Director General or 38
Principal
Director or Director shall not authorise the retention of the books of account and other documents for a
period exceeding thirty days after all the proceedings under the Indian Income-tax Act, 1922 (11 of
1922), or this Act in respect of the years for which the books of account or other documents are relevant
are completed.
39(8A) An order under sub-section (3) shall not be in force for a period exceeding sixty days from the
date of the order.
(9) The person from whose custody any books of account or other documents are seized under
sub-section (1) 2
or sub-section (1A) may make copies thereof, or take extracts therefrom, in the presence
of the authorised officer or any other person empowered by him in this behalf, at such place and time as
the authorised officer may appoint in this behalf.
40(9A) Where the authorised officer has no jurisdiction over the person referred to in clause (a) or
clause (b) or clause (c) of sub-section (1), the books of account or other documents, or any money,
bullion, jewellery or other valuable article or thing (hereafter in this section and in sections
132A and 132B referred to as the assets) seized under that sub-section shall be handed over by the
authorised officer to the Assessing Officer having jurisdiction over such person within a period of sixty
days from the date on which the last of the authorisations for search was executed and thereupon the
powers exercisable by the authorised officer under sub-section (8) or sub-section (9) shall be exercisable
by such Assessing Officer.
41(9B) Where, during the course of the search or seizure or within a period of sixty days from the
date on which the last of the authorisations for search was executed, the authorised officer, for reasons to be recorded in writing, is satisfied that for the purpose of protecting the interest of revenue, it is necessary
so to do, he may with the previous approval of the Principal Director General or Director General or the
Principal Director or Director, by order in writing, attach provisionally any property belonging to the
assessee, and for the said purpose, the provisions of the Second Schedule shall, mutatis mutandis, apply.
(9C) Every provisional attachment made under sub-section (9B) shall cease to have effect after the
expiry of a period of six months from the date of the order referred to in sub-section (9B).
(9D) The authorised officer may, during the course of the search or seizure or within a period of sixty
days from the date on which the last of the authorisations for search was executed, make a reference to a
Valuation Officer referred to in section 142A, who shall estimate the fair market value of the property in
the manner provided under that section and submit a report of the estimate to the said officer within a
period of sixty days from the date of receipt of such reference.
(10) If a person legally entitled to the books of account or other documents seized under
sub-section (1) 42
or sub-section (1A) objects for any reason to the approval given by the 4344
Principal
Chief Commissioner or Chief Commissioner, 45
Principal Commissioner or Commissioner, 46
Principal
Director General or Director General or 47
Principal Director or Director under sub-section (8), he may
make an application to the Board stating therein the reasons for such objection and requesting for the
return of the books of account or other documents 48
and the Board may, after giving the applicant an
opportunity of being heard, pass such orders as it thinks fit.
49
* * * * *
50
(13) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches and
seizure shall apply, so far as may be, to searches and seizure under sub-section (1) or sub-section (1A).
(14) The Board may make rules in relation to any search or seizure under this section; in particular,
and without prejudice to the generality of the foregoing power, such rules may provide for the procedure
to be followed by the authorised officer
(i) for obtaining ingress into 51any building, place, vessel, vehicle or aircraft to be searched
where free ingress thereto is not available;
(ii) for ensuring safe custody of any books of account or other documents or assets seized.
52Explanation 1.For the purposes of sub-sections (9A), (9B) and (9D), with respect to execution
of an authorisation for search, the provisions of sub-section (2) of section 153B shall apply.
Explanation 2.In this section, the word proceeding means any proceeding in respect of any year,
whether under the Indian Income-tax Act, 1922 (11 of 1922), 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.
Notes:
1. Subs. by Act 25 of 2014, s. 4, for Chief Commissioner (w.e.f. 1-6-2013).
2. Subs. by s. 4, ibid., for Director General (w.e.f. 1-6-2013).
3. Subs. by s. 4, ibid., for Commissioner (w.e.f. 1-6-2013).
4. Subs. by s. 4, ibid., for Director (w.e.f. 1-6-2013).
5. Subs. by Act 1 of 1965, s. 2, for section 132 (w.e.f. 12-3-1965).
6. Subs. by Act 4 of 1988, s. 2, for Director of Inspection (w.e.f. 1-4-1988).
7. Subs. by Act s. 2, ibid., for Commissioner (w.e.f. 1-4-1988).
8. Subs. by Act 33 of 2009, s. 51, for or any such Joint Director or Joint Commissioner as may be empowered in this behalf
by the Board, (w.e.f. 1-6-1994).
Earlier amended by Act 41 of 1975, s. 35 (w.e.f. 1-10-1975), 21 of 1998, s. 3 (w.e.f. 1-
10-1998) and 4 of 1988, s. 2 (w.e.f. 1-4-1988).
9. Ins. by s. 51, ibid. (w.e.f. 1-10-1998).
10. Subs. by Act 41 of 1975, s. 35, for which has not been disclosed (w.e.f. 1-10-1975).
11. Subs. by s. 35, ibid., for he may authorise any Deputy Director of Inspection, Inspecting Assistant Commissioner,
Assistant Director of Inspection or Income-tax Officer (hereinafter referred to as the authorized officer) to (w.e.f. 1-
10-1975).
12. Ins. by Act 33 of 2009, s. 51 (w.e.f. 1-6-1994).
13. Subs. by Act 21 of 1998, s. 3, for Deputy Director (w.e.f. 1-10-1998). Earlier substituted as Deputy Director for
Deputy Director of Inspection by Act 4 of 1988, s. 2 (w.e.f. 1-4-1988).
14. Subs. by s. 3, ibid., for Deputy Commissioner (w.e.f. 1-10-1998).
Earlier substituted as Deputy Commissioner for
Inspecting Assistant Commissioner by s. 2, ibid. (w.e.f. 1-4-1988).
15. Subs. by s. 3, ibid., for Assistant Director (w.e.f. 1-10-1998).
Earlier substituted as Assistant Director for Assistant
Director of Inspection by s. 2, ibid. (w.e.f. 1-4-1988).
16. Subs. by s. 3, ibid., Assistant Commissioner (w.e.f. 1-10-1998).
Earlier substituted as Assistant Commissioner for
or Income tax officer by s. 37, ibid. (w.e.f. 1-4-1988).
17. Ins. by Act 33 of 2009, s. 51 (w.e.f. 1-6-1994).
18. Subs. by Act 41 of 1975, s. 35, for building or place (w.e.f. 1-10-1975).
19. Ins. by s. 35, ibid. (w.e.f. 1-10-1975).
20. Ins. by Act 20 of 2002, s. 56 (w.e.f. 1-6-2002).
21. Ins. by Act 32 of 2003, s. 59 (w.e.f. 1-6-2003).
22. Ins. by Act 33 of 2009, s. 51, (w.e.f. 1-10-1998).
23. Subs. by Act 25 of 2014, s. 4, for Chief Commissioner (w.e.f. 1-6-2013).
Earlier substituted as Chief Commissioner or
Commissioner for Commissioner by Act 4 of 1988, s. 2 (w.e.f. 1-4-1988).
24. Subs. by s. 4, ibid., for Commissioner (w.e.f. 1-6-2013).
25. Subs. by Act 4 of 1988, s. 37, for section 121 (w.e.f. 1-4-1988).
26. Ins. by Act 7 of 2017, s. 50 (w.e.f. 1-10-1975).
27. Ins. by Act 41 of 1975, s. 35 (w.e.f. 1-10-1975).
28. Ins. by Act 26 of 1988, s. 34 (w.e.f. 1-4-1989).
29. Ins. by Act 4 of 1988, s. 37 (w.e.f. 1-4-1989).
30. Sub-sections (5) to (7) omitted by Act 20 of 2002, s. 56 (w.e.f. 1-6-2002).
31. Ins. by Act 41 of 1975, s. 35 (w.e.f. 1-10-1975).
32. Subs. by Act 20 of 2002, s. 56, for one hundred and eighty days from the date of the seizure (w.e.f. 1-6-2002).
33. Subs. by Act 32 of 2003, s. 59, for under clause (c) of section 158BC (w.e.f. 1-6-2003).
34. Subs. by Act 26 of 1997, s. 41, for Chief Commissioner or Commissioner (w.e.f. 1-10-1996).
35. Subs. by Act 25 of 2014, s. 4, for Chief Commissioner (w.e.f. 1-6-2013).
36. Subs. by s. 4, ibid., for Commissioner (w.e.f. 1-6-2013).
37. Subs. by s. 4, ibid., for Director General (w.e.f. 1-6-2013).
38. Subs. by s. 4, ibid., for Director (w.e.f. 1-6-2013).
39. Subs. by Act 20 of 2002, s. 56, for sub-section (8A) (w.e.f. 1-6-2002).
40. Subs. by s. 56, ibid., for sub-section (9A) (w.e.f. 1-6-2002).
41. Ins. by Act 7 of 2017, s. 50 (w.e.f. 1-4-2017).
42. Ins. by Act 41 of 1975, s. 35 (w.e.f. 1-10-1975).
43. Subs. by Act 26 of 1997, s. 41, for Chief Commissioner or Commissioner (w.e.f. 1-10-1996).
44. Subs. by Act 25 of 2014, s. 4, for Chief Commissioner (w.e.f. 1-6-2013).
45. Subs. by s. 4, ibid., for Commissioner (w.e.f. 1-6-2013).
46. Subs. by s. 4, ibid., for Director General (w.e.f. 1-6-2013).
47. Subs. by s. 4, ibid., for Director (w.e.f. 1-6-2013).
48. Ins. by Act 20 of 2002, s. 56 (w.e.f. 1-6-2002).
49. Sub-sections (11), (11A) and (12) omitted by Act 20 of 2002, s. 56 (w.e.f. 1-6-2002).
50. Subs. by Act 41 of 1975, s. 35, for sub-section (13) (w.e.f. 1-10-1975).
51. Subs. by s. 35, ibid., for such building or place (w.e.f. 1-10-1975).
52. Subs. by Act 7 of 2017, s. 50, for Explanation 1 (w.e.f. 1-4-2017).