Substitution of new section for section 132

30. For section 132 of the Income-tax Act, the following section shall be substituted, namely:—

Powers of search and seizure

"132. (1) Where the Commissioner, in consequence of information in his possession, has reason to believe that—

(a)  any person to whom a summons under sub-section (2). of section 37 of the Indian Income-tax Act, 1922(11 of 1922) or under sub-section (2) 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 (II of 1222), or under this Act, or

(c)  any person is in possession of any articles or things including money wholly disproportionate to his know sources of income, particulars or which will be useful for, or relevant to, any proceeding under the Indian Income-tax Act, 1922 (II of 1922), or this Act,

he may authorise any Inspecting Assistant Commissioner or any Income-tax Officer to enter and search any building or place where he has reason to suspect that such books of account, other documents, articles or things including money are kept and if as a result of the search such books of account, other documents, articles or things including money are found, the Inspecting Assistant Commissioner or the Income-tax Officer, as the case may be, may—

 (i)  seize any such books of account or other documents ;

(ii)  place marks of identification on any such books of account or other documents or make or cause to be made extracts or copies therefrom ;

(iii)  make a note or an inventory of any articles or things including money found which, in his opinion, will be useful for, or relevant to, any proceeding under the Indian Income-tax Act,, 1922, or this Act.

(2) The books of account or other documents seized under sub-section (I) shall not be retained by the Inspecting Assistant Commissioner or the Income-tax Officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same are recorded by him in writing and the approval of the Commissioner for such retention is obtained :

Provided that the Commissioner shall not authorities 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 (II of 1922), or this Act in respect of the years for which the books of account or other documents are relevant are completed.

(3) The person from whose custody and books of account or other documents are seized under sub-section (I) may make copied thereof or take extracts there from, in the presence of the Income-tax Officer or any other person authorised by him, at such place and time as the Income-tax officer may appoint in this behalf.

(4) If a person legally entitled to the books of account or other document seized under sub-section (I) objects for any reason to the approval given by the Commissioner under sub-section (2), he may make an application to the Board stating therein the reasons for such objection and requesting for the return of that books of account or other documents.

(5) On receipt of the application under sub-section (4) the Board may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.

(6) The provisions of the Code of Criminal Procedure, 1898 (5 of 1998) relating to searches shall apply, so far as may be, to searches under sub-section (I) of this section.

(7) The Board may make rules in relation to searches under this section.".

[Finance Act, 1964]