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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 246(1) or a notice under section 268(1),––

(i) was issued to produce, or cause to be produced, any books of account or other documents or any information stored in any electronic media or 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 stored in an electronic media or a computer system which will be useful for, or relevant to, any proceedings under 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 this Act, or the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, (herein referred to as the undisclosed income or property in this section), 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, hereinafter 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, other documents, or any information stored in an electronic media or computer systems 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 electronic record [as defined in section 2(1)(ha), (i), (j), (k), (l), (r), and (t) of the Information Technology Act, 2000], on computer systems, any information stored in an electronic media or computer systems, 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 any information, electronic records and communication or data contained in or available on such computer systems;
(iii)
break open the lock of any door, box, locker, safe, almirah, or other receptacle for exercising the powers conferred by clause (i), to enter and search any building, place, etc., where the keys thereof or the access to such building, place, etc., is not available, or gain access by overriding the access code to any said computer system, or virtual digital space, where the access code thereof 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, 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 systems;
(vi)
make a note or an inventory of any such asset, and stock-in-trade of (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;
(viii)
serve an order of deemed seizure, on the owner or the person who is in immediate possession or control thereof, of any valuable article or thing, which is not stock-in-trade, not to remove, part with or otherwise deal with it, except with the previous permission of the authorised officer, if it is not possible or practicable to take physical possession or removal to a safe place of such article or thing, due to its volume, weight, or other physical characteristics or it being of a dangerous nature.
(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 him to exercise the powers under sub-section (1), where he has reason to believe that any delay in getting the authorisation from the income-tax authority 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 Commissioner or Commissioner, in consequence of information in his possession, has reason to suspect that any books of account, other documents, or any information stored in an electronic media or computer systems, or asset in respect of which an officer has been authorised by the competent authority to take action under sub-section (1)(i) to (viii) 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 clauses aforesaid in respect of such building, place, vessel, vehicle or aircraft.
(4)
The authorised officer may, where it is not practicable to seize, any such books of account, other documents, computer systems, asset, bank locker, bank account, for reasons other than deemed seizure under of sub-section (1) (viii),––

(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 take such steps as may be necessary for ensuring compliance with the order; and

(b) such order shall not remain in force for a period exceeding sixty days from the date of the order and serving of such order shall not be deemed to be seizure of such books of account, other documents or assets 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 Commissioner or the Chief Commissioner or the Principal Director General or the Director General, as per with such procedure, as prescribed, 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 or access holder of any computer systems, books of account, other documents or asset, or any other person who is present in the premises or is being searched, and––

(a) any statement made by the such person, during such examination may thereafter be used in evidence in any proceeding under this Act; and

(b) the examination of any such person 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 this Act.

(7)
Where any books of account (in physical form or electronic form), other documents or asset, is found in the possession or control of any person in the course of a search, it may be presumed—

(a) that such books of account, computer systems, virtual digital space, other documents or asset, belong or belongs to such person;

(b)
that the contents of such books of account, other documents, electronic content, records or communication found on such computer systems or virtual digital space, are true;
(c)
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 the handwriting of that person; and

(d) 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, and that the electronic records, data, communication, and information exchange carried out using such electronic devices is presumed to be 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 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;

(b)
be valid for six months from the end of the month in which the order of provisional attachment is made, and the rules prescribed as referred to in 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 executed, make a reference to a Valuation Officer, or any person registered as a value under section 514, or any person or entity registered by or under any law enforce, requiring him to––

(a) estimate the fair market value of the property in the manner, as 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 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 assets seized.