(1) The Inspecting Income-tax Authority may exercise the power of search and seizure of information of any person as described below if the Board or the Inspecting Income-tax Authority has reason to believe on the basis of any information that-

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

(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 issuance of any summons or notice under this Act or the preparation of any record relating to income for production, such records relating to income have failed or fails to produce or likely to fails to produce.

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

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

(a) by entering into and search building, place, ship, vehicle or aircraft, where there is reason to suspect, records, money, precious metals, jewelery or other valuable articles or things relating to any proceeds referred to in sub-section (1) kept in custody;

(b) breaking and opening any door, box, locker, self, cupboard or other receptacle for the purpose of entry or search if the key is not available;

(c) search any such person who has left or is about to leave, or remains in, any building, place, ship, vehicle or aircraft, if there is reason to suspect that such person has any account, document, electronic record concealed in the system, money, precious metals, jewels or any other valuable article;

(d) confiscation of records relating to income, money, precious metal jewelery or other valuable articles or things found on search;

(e) affixing identification marks or issuance electronic numbers to records relating to income or making summaries or undertaking to make summaries thereof or making copies thereof;

(f) note making or inventory of money, bullion, jewelery or other valuable articles or articles; and

(g) retrieving information, images or any data stored in electronic records and systems or entering by breaking password security or copying or analyzing income information.

(4) The authorized officer may seek the assistance of any police officer or any Government officer or any professional expert to assist him for all or any of the purposes mentioned in sub-section (2); and may require services, and if assistance is so sought it shall be the duty of such officer or professional expert to render the assistance requested.

(5) Where it is not possible to seize records, money, precious metals, jewelery or other valuable articles or things relating to income, the authorized officer may, by order in writing, order the owner or any person in possession or control thereof, not to remove, divert or otherwise dispose of it without his prior permission, and the authorized officer may take such steps as may be necessary to carry out 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 precious metal, jewellery, valuable article or thing is transferred, or removed, diverted or otherwise disposed of, such owner or person may be identified as owner by the Deputy Commissioner of Taxes and such person shall be deemed to be a tax defaulter under this Act.

(6) A statement made by any person who has taken oath during the examination of any records by an authorized officer during the search or seizure, relating to income, money, precious metals, jewelery or other valuable articles or things and while in the possession or control of any person under this Act. may be used as evidence under any proceedings.

(7) Where any record relating to income, money, precious metal jewelery or other valuable article or thing is found in the possession or control of any person during a search, it shall be deemed that-

(a) records relating to income, money, precious metals, jewellery, objects or articles owned by such person;

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

(c) the signature or hand writing given on any such account or document shall be deemed to be the signature or hand writing of the person whose signature or hand writing should be.

(8) The person from whose custody any record relating to income is seized under sub-section (2) shall at the place and time fixed by the authorized officer, make a copy of the same or take a summary thereof can be received in his presence or in the presence of any other person so appointed.

(9) The Board may make rules in respect of the following matters, namely:-

(a) Regarding procedure to be followed by authorized officer-

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

(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 started or completed on or before the date authorized for any search under this section and shall include all proceedings under this Act which in any year after such date commenced.