IT SURVEY AND SEARCH 

1. Context

2. About I-T Surveys

• The surveys at the BBC's offices are being carried out under various provisions of the I-T Act, 1961, such as Section 133A, which gives the I-T Department the power to carry out "Surveys" to collect hidden information.
• The provision for surveys was incorporated into the Act through an amendment carried out in 1964.

• An I-T authority may, during the survey, make an inventory of any cash, stock or other valuables; it may record the statements of anyone or placemarks of identification on the books and documents or take their extracts or copies.
• The I-T authority may also "impound and retain any books of account or other documents after recording reasons for doing so".
• However, to retain such books for more than 15 days (excluding holidays), prior approval of a senior officer, including the Principal Chief Commissioner or Chief Commissioner or Principal Director General or Director General or Principal Commissioner or Commissioner must be obtained.
• The provisions for impounding or seizing the goods were introduced only by the Finance Act, of 2002.

3. About I-T search

• A search typically refers to what is called a raid although the word raid has not been defined anywhere in the Incom Tax Act. 
• However, search has been defined under Section 132 of the Act.
• Under this Section, the I-T Department can carry out a process of inspection by entering and searching any building where it has reasons to believe someone has undisclosed income or property like money, bullion and gold.

• The Act says that during a search, any authorized officer including the Deputy Director of Inspection, Inspecting Assistant Commissioner, Assistant Director of Inspection or Income-Tax Officer can:

1. Enter and search any building or place where he has reason to suspect that such books of account, other documents, money, bullion, jewellery or other valuable article or thing are kept;
2. Break open the lock of any door, box, locker, safe, almirah, or other receptacles for exercising the powers conferred by clause (i) where the keys thereof are not available;
3. Seize any such books of account, other documents, money, bullion, jewellery or other valuable articles or things found as a result of such search;
4. Place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom;
5. Make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing.

4. Difference between a search and a survey

• While in common parlance, people often use these two words (and also raid) interchangeably, they are defined differently and they denote different things.
• Broadly speaking, a search is a more serious proceeding than a survey, with larger consequences.
• Search, as defined under Section 132, can take place anywhere within the jurisdiction of the authorized officer.
• A survey under Section 133 A(1) can only be conducted within the limits of the area assigned to the officer or at any place occupied by any person in respect of whom he exercises jurisdiction at which a business or profession or activity for a charitable purpose is carried on.
• Also, surveys can be carried out only during working hours on business days, whereas a search can happen on any day after sunrise and continue until the procedures are completed.

5. Conclusion

For Prelims & Mains