BSC Insights – Survey, Search and Seizure

The provisions of Search and Seizure first made its entry into the Income Tax, Act in 1956. Finance Act, 1964 totally substitutes Section 132, which deals with the Search and Seizure provisions. Survey, Search and Seizure are the two weapons in the armory of the revenue department to detect tax evasion. Search and survey are essential processes by which evidence is gathered to be used to determine correct tax liability of an assessee.

The power under Survey, Search and Seizure has been given to the tax authorities to unearth any concealed income or valuables and to keep check on tax evasion practices and thereby mitigate the generation of black money.

The Income Tax Department’s “Search and Survey” operations, more commonly known as ‘raids’, has always been one of the worst nightmares of illegitimate businessman and individuals. They fear that once caught, they will be liable to not only heavy tax and penalty payments but will also have prosecution implications. Therefore, it is important to clearly understand the provisions of “Search and Seizure” to avoid any panic and misconduct during the operations.

In this insight, we have sought to update you about the provisions of Survey, Search and Seizure and highlight the major differences between Search and Survey.

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