(1) For the purpose of surveying the tax liability of any person under this Act, the Board or the Commissioner of Taxes may delegate to any income-tax authority the power to visit and survey any place or premises where a business is carried on or income is derived from the payment of rent.

(2) The income-tax authority shall enter the place mentioned in sub-section (1) in the following cases, namely:—

(a) if the business is carried on at the place, only during the hours when the place is open for business; and

(b) in any other case, only after sunrise and before sunset.

(3) On entering the place mentioned in sub-section (2), the income-tax authority shall take the following steps, namely:—

(a) placing marks of identification on or stamping the books of accounts related to income, assets, and liabilities inspected by it and gathering summary and copy thereof;

(b) seizing or taking into custody the records relating to the income so inspected after recording the reasons;

(c) making an inventory of any cash, cash deposit or other valuable articles;

(d) examining on oath any person for any statement made by him if it is relevant to any proceeding under this Act; and

(e) making such enquiries as may be necessary.

(4) Every proprietor, employee or other person who may be attending in any manner to, or helping in, the carrying on of any business, or every person who may be residing in the place or premises in respect of which an income tax authority may be exercising power under sub-section (1), shall in aid of the exercise of such power,-

(a) the authorities shall take necessary measures to carry out the following functions—

(i) inspecting and entering records relating to income, assets and liabilities; or

(ii) scrutinizing and inspecting cash, stock or any other valuable article or thing received at such place or premises; and

(b) furnish such information as the authority may require in respect of any matter which may be useful for, or relevant to, any proceeding under this Act.

(5) A statement made by any person under clause (d) of sub-section (8) shall be used as evidence in any proceedings under this Act.

(6) During the enforcement of this section, the Income-tax authority shall not remove any cash, stock or other valuable article or thing from the place or premises entered.

(7) The Income Tax Authority shall not retain any records relating to income seized in custody under this section, for a period exceeding 1 (one) month without the approval of the Commissioner of Taxes.

(8) Any Income-tax authority, other than an Inspector, shall have all the powers to enforce sub-section (1) of section 223, if any person is incapable of performing or disobeys the following duties, namely:—

(a) providing assistance to income-tax authorities for examination of accounts or other documents;

(b) permitting the examination or examination of any cash, stock or other valuable article or thing;

(c) providing any information; or

(d) recording or giving statements.