Power of income tax officer (tds)

I don't think ITO can make such a visit for verification of accounts without any prior intimation in writting to the company. The IT Law clears says that the assessee has every right to be heard according to 'natural justice', which means that the assessee must be in default and given an opportunity to provide clarification to the ITO to determine whether it was really a violation of some IT provision. The assessee has every right to demand authorization by CIT for such a search in the business premises. I advise to check if there has been any default by the company, any communication by the ITO or any notice pending. 

The ITO has powers to visit the company but with poper notice for carrying out survey in the company.

ITO can come to the premises without prior notice but only with proper notice. Sec. 132 of IT Act, 1961 relating to Search & Seizure allows ITO to visit any premises but he should have proper notice for this.

Further he can also visit to premises in case of other person whether related or not to that person, but this also requires a proper notice.

Proper notice and rank level of the officer is also important merely an lower level of officer cannot conduct survey or seizure. Not sure but only addl. coomissioner or above rank officer can conduct survey or seizure. If th mere an ITo cannot visit the company premises.

Originally posted by : Studentsca
	Proper notice and rank level of the officer is also important merely an lower level of officer cannot conduct survey or seizure. Not sure but only addl. coomissioner or above rank officer can conduct survey or seizure. If th mere an ITo cannot visit the company premises.

its not true that only Add. commissionor or higher level officer can conduct search. search is conducted by taking permission from "Director General, Director, Chief Commissioner of Income-tax, the Commissioner of Income-tax or any Joint Director or Joint Commissioner (the last two authorities on being empowered specifically in this behalf)". the above mentioned authorities empowered Assessing Officer of any other authority to conduct search & Seizure.

Thanks to all for the response, but we are Govt. Organisation (Public Works Dept) , the ITO(TDS) and inspector visited our dept. and only showed their Identity Card and nothing else and wanted to verify our accounts,we did not showed them.

Then they told that since we are not cooperating them they will give us notice, they also said that we are not conducting survey nor search and seizure it is only spot verification.

Now we received notice (no section no. mentioned) requiring us to present before them along with Last four Financial Year Cash book, ledger, payments to Contracter etc

My question is that whether we should present before them on the basis of notice on which no section no. has been quoted or else what should we do.

Originally posted by : CA Nitin K. Varshney
	Originally posted by : Studentsca Proper notice and rank level of the officer is also important merely an lower level of officer cannot conduct survey or seizure. Not sure but only addl. coomissioner or above rank officer can conduct survey or seizure. If th mere an ITo cannot visit the company premises. its not true that only Add. commissionor or higher level officer can conduct search. search is conducted by taking permission from "Director General, Director, Chief Commissioner of Income-tax, the Commissioner of Income-tax or any Joint Director or Joint Commissioner (the last two authorities on being empowered specifically in this behalf)". the above mentioned authorities empowered Assessing Officer of any other authority to conduct search & Seizure.

The relevant provisions are contained in section 132 of the Income-tax Act. Search and seizure proceedings amount to serious invasion of right to privacy and right to possess property. Hence, it is necessary that these proceedings are carried out strictly within the framework of the relevant provisions.

The prerequisite for action under this section is that the concerned authority has information which provides a reason to believe that:

• A person has failed or will fail to produce books of account or documents required from him by issue of summons under section 131 or notice under section 142 or

• A person possesses money, bullion, jewellery or other valuable asset which represent income or property which he has not disclosed or will not disclose for the purposes of the Income-tax Act (undisclosed income or property).

Information to the effect that a person possesses large amount of cash would not suffice in absence of information to the effect that it is not disclosed or will not be disclosed. Also the information should exist when the authorization is issued and authorization cannot be justified with reference to findings in search. Reference may be made to decision of Delhi High Court in case of Ajit Jain vs. Union of India (2001) (159 CTR 204, 242 ITR 305), decision of Bombay High Court in case of Diamondstar Exports Limited vs. Director General of Income-tax (143 Taxman 16) and of Allahabad High Court in case of Suresh Chand Agarwal vs. Director General of Income-tax (269 ITR 22).

The powers under the section are vested in Director General, Director, Commissioner or Chief Commissioner or Joint Director or Joint Commissioner empowered by the Board.

These authorities may authorize Assistant Director, Deputy Director, Assistant Commissioner or Deputy Commissioner to conduct the search and seizure operations.

Further, the Director General, Director, Commissioner or Chief Commissioner may also authorize Joint Director or Joint Commissioner or Additional Director, Additional Commissioner or Assistant Director or Deputy Director or Assistant Commissioner, Deputy Commissioner or Income Tax Officer for this purpose. (Authorized persons referred to as Authorized Officer).

Powers of the Authorized Officers

Unlike action under section 133A which is generally restricted to business place, action under section 132 can cover any building, including residential buildings, place, vessel, vehicle or aircraft.

The action can commence at any time of day or night.

If keys are not available, authorized officer may break open lock of door, box, locker, safe, almirah or other receptacle.

He may also search a person who has got out of or about to get into the building, or is in possession of books of account, tangibles, etc.

He may inspect books of account or documents including electronic record.

He may seize books of account, documents, money, bullion, jewellery or valuable article or thing, other than stock-in-trade of business. However, he would not be justified in seizing assets which are disclosed to the Income-tax Department. Reference may be made to decision of Guwahati High Court in case of Rajesh Sharma vs. ACIT (168 CTR 231). The seized items are to be handed over to the Assessing Officer having jurisdiction over the assessee within 60 days from the date of last authorization. Immovable property cannot be seized — Reference — Decision of M.P. High Court in case of Bapurao vs. ADIT (247 ITR 98). The books and documents are not to be retained beyond 30 days from the date of relative assessment order unless reasons are recorded and approval is taken from Commissioner/Chief Commissioner/Director/Director General. Authorized officer is to allow assessee to take copies thereof.

In case it is not practicable to seize books, documents, money, bullion, jewellery or valuable article or thing, the Authorized Officer may serve a prohibitory order to the effect that such asset (other than stock-in-trade) shall not be removed or dealt with without his permission. Except as regards valuable article or thing not seized on account of their physical characteristics, the order shall not be considered as seizure and shall be in force for up to 60 days.

He may place marks of identification on books or documents or get copies thereof and also make inventory of money, bullion, jewellery or valuable article or thing.

The Authorized Officer may requisition services of police or other officer for this purpose.

He may examine on oath any person found in possession of books, documents, money, bullion, jewellery or valuable article or thing. There is rebuttable presumption that these assets belong to him and that contents of the books/documents are true.

Dear Manoj,

Section must be mentioned on the notice. If it is not mentioned, in which section you will file your reply............ in my point of view, you dont need to present there, because this is invalid notice in absence of proper section. 

No.

You need not show any books of accounts without notice.

sorry manoj, i dnt have case laws in this regard, but notice is required. he can also ask to present your books in any other person's proceeding related to you, but it also requires a valid notice under a valid section.

further if u still reply for such invalid notice, that invalid notice become valid.

there would be no case law because it is illegal to enter companys pemises without proper notice.