(1) The Investigating Income-tax Authority may exercise the power of search and seizure of any person’s information as provided in the sub-sections below if the Board or the Investigating Income-tax Authority has reason to believe on any information that—

(a) any person who has been required by any summons or notice under this Act to supply or produce records relating to income, assets and liabilities, but such person fails to supply or produce the same;

(b) the person referred to in clause (a) is not likely to supply or produce records relating to income, assets and liabilities; or

(c) by reason of the production of any record relating to income for the issuance or production of any summons or notice under this Act, such records relating to income have failed or likely to fail to prepare or produce.

(2) The Investigating Income-tax Authority may delegate the duty of conducting search and seizure under this section to any such officer, not below the rank of Assistant Commissioner of Taxes, (hereinafter referred to as the authorized officer).

(3) Notwithstanding anything contained in any other law for the time being in force, the authorized officer may take the following steps, namely:—

(a) enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that any books of accounts, documents, money, bullion, jewellery or other valuable article or
thing referred to in sub-section (1) are or have been kept;

(b) break and open the lock of any door, box, locker, safe, admiral or other receptacle for the purpose of the said entry, and search, if keys thereof are not available;

(c) 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 he has reason to suspect that such person has secreted about his person any such books of accounts, documents, electronic records and systems, money, bullion, jewellery or other valuable article or thing;

(d) seize any such books of accounts, documents, money, bullion, jewellery or other valuable article or thing found as a result of such search;

(e) place marks of identification on or stamp any books of accounts or other document or make or cause to be made extracts or copies therefrom; and

(f) make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing;

(g) retrieve the data, images or any inputs stored in the electronic records and systems or enter the systems by breaking through password protection or copy or analyse the data, books of accounts, documents, images or inputs.

(4) The authorized officer may requisition the services of any police officer or other officer of the Government or any professional expert to assist him for all or any of the purposes specified in sub-section (2); and it shall be the duty of every such officer or professional expert to comply with such requisition.

(5) The authorized officer may, where it is not practicable to seize any such books of accounts, documents, money, bullion, jewellery or other valuable article or thing, by order passed in writing, require the owner or the person who is in immediate possession or control thereof not to remove, part with or otherwise deal with it without obtaining his previous permission; and the authorized officer may take such steps as may be necessary for ensuring compliance with the order:

     Provided that if, without reasonable cause, the owner or any person fails to comply with the provisions of this sub-section and if the bullion, jewellery, valuable article or thing is transferred, or removed, diverted or otherwise disposed of, such owner or person may be identified by the Commissioner of tax as the owner and such person shall be deemed to be a tax defaulter under this Act.

(6) The authorized 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 accounts, documents, money, bullion, jewellery or other valuable article or thing and any statement made by such person during the examination may thereafter be used in evidence in any proceeding under this Act.

(7) Where any books of accounts, documents, money, bullion, jewellery or other valuable article or thing is found in the possession or control of any person in the course of a search, it may be presumed that-

(a) books of account, money, bullion, jewellery, article or thing relating to income belongs to such person;

(b) the contents of the books of accounts relating to income are true; and

(c) the signature on, or the handwriting in, any such books or documents is the signature or handwriting of the person whose signature or hand writing it purports to be.

(8) The person from whose custody any books of accounts or other documents are seized under sub-section (2) may make copies thereof, or take extracts therefrom, in the presence of the authorized officer or any other person designated by him, at such place and time as the authorized officer may appoint in this behalf.

(9) The Board may make rules on the following matters, namely:—

(a) regarding the procedure to be followed by the authorized officer—

(i) open access for search to any building, place, vessel, vehicle or aircraft to which there is no right of entry; and

(ii) for the safe custody of seized goods; and

(b) any other matter relating to search and seizure under this section.

(10) Subject to the provisions of this Act, the provisions of the Code of Criminal Procedure, 1898 (Act No. V of 1898) under this sub-section shall, as far as possible, apply to the applicable cases relating to search and seizure by rules made by the Board for this purpose.

(11) For the purposes of this section, the term “proceedings” means any proceedings under this Act in any year which are incomplete on or completed on or before the date authorized for any search under this section and all proceedings under this Act which in any year after such date shall include which has commenced.