any person to whom a notice under sub-section (4) of section 16 or a summons under section 37 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 notice or summons, or

any person to whom a notice or summons 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 this Act, or

the [Director-General or Director] [ Substituted by Act 4 of 1988, Section 127, for " Director of Inspection " (w.e.f. 1.4.1988).] or the [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner " (w.e.f. 1.4.1988).], as the case may be, may authorise any [Joint Director] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Director " , " Assistant Director " and " Deputy Commissioner " , respectively (w.e.f. 1.10.1998).], [Joint Commissioner,] [Substituted by Act 21 of 1998, Section 66, for " Deputy Director " , " Assistant Director " and " Deputy Commissioner " , respectively (w.e.f. 1.10.1998). ][Assistant Director or Deputy Director,] [ Substituted by Act 21 of 1998, Section 66, for " Assistant Director " and " Assistant Commissioner " , respectively (w.e.f. 1.10.1998).] [Assistant Commissioner or Deputy Commissioner] [Substituted by Act 4 of 1988, Section 154, for " or Wealth-tax Officer " (w.e.f. 1.4.1989). ][or Joint Commissioneror Income-tax Officer] [

such [Joint Director] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Director " , " Assistant Director " and " Deputy Commissioner " , respectively (w.e.f. 1.10.1998).] or [Joint Commissioner] [ Substituted by Act 4 of 1988, Section 154, for " any articles or things including money " (w.e.f. 1.4.1989).] may authorise any [Assistant Director or Deputy Director] [ Substituted by Act 21 of 1998, Section 66, for " Assistant Director " and " Assistant Commissioner " , respectively (w.e.f. 1.10.1998).], [Assistant Commissioner or Deputy Commissioner] [Substituted by Act 21 of 1998, Section 66, for " Assistant Director " and " Assistant Commissioner " , respectively (w.e.f. 1.10.1998). ] or Income-tax Officer,-

enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account or other documents [money, bullion, jewellery or other valuable article or thing] [ Substituted by Act 4 of 1988, Section 154, for " articles or things including money " (w.e.f. 1.4.1989).] are kept;

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 or other documents, [money, bullion, jewellery or other valuable article or thing] [Substituted by Act 4 of 1988, Section 154, for " articles or things including money " (w.e.f. 1.4.1989). ];

break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available;

[ seize any such books of account, other documents money, bullion, jewellery or other valuable article or thing found as a result of such search;] [ Substituted by Act 4 of 1988, Section 154, for Clause (iv)(w.e.f. 1.4.1989).]

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

make a note or an inventory of [any money, bullion, jewellery or other valuable article or thing] [ Substituted by Act 4 of 1988, Section 154, for " any article or things including money " (w.e.f. 1.4.1989).] found which, in his opinion, will be useful for, or relevant to, any proceeding under this Act:

Provided that where any building, place, vessel, vehicle or aircraft referred to in clause (i) is within the area of jurisdiction of any [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner " (w.e.f. 1.4.1988).] but such [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner " (w.e.f. 1.4.1988).] has no jurisdiction over the person referred to in clause (a) or clause (b) or clause (c) of this sub-section, then, notwithstanding anything contained in [section 8] [ Substituted by Act 4 of 1988, Section 154, for " section 10" (w.e.f. 1.4.1989).], it shall be competent for him to exercise the powers under this sub-section in all cases where he has reason to believe that any delay in getting the authorisation from the [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner " (w.e.f. 1.4.1988).] having jurisdiction over such person may be prejudicial to the interests of the revenue:

[Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such authorised officer and such action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause (iv) of this sub-section.] [ Inserted by Act 4 of 1988, Section 154 (w.e.f. 1.4.1989).]

(2)

Where any [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner " (w.e.f. 1.4.1988).], in consequence of information in his possession, has reason to suspect that any books of account or other documents, [money, bullion, jewellery or other valuable article or thing ] [Substituted by Act 4 of 1988, Section 154, for " articles or things including money " (w.e.f. 1.4.1989). ]in respect of which an officer has been authorised by the [Director-General or Director] [ Substituted by Act 4 of 1988, Section 127, for " Director of Inspection " (w.e.f. 1.4.1988).] or any other [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner " (w.e.f. 1.4.1988).] or any such [Joint Director] [ Substituted by Act 21 of 1998, Section 66, for " Deputy Director " and " Deputy Commissioner " , respectively (w.e.f. 1.10.1998).] or [Joint Commissioner] [Substituted by Act 21 of 1998, Section 66, for " Deputy Director " and " Deputy Commissioner " , respectively (w.e.f. 1.10.1998). ] as may be empowered in this behalf by the Board to take action under clauses (i) to (iv) of sub-section (1) are kept in any building, place, vessel, vehicle or aircraft not mentioned in the authorisation under sub-section (1) such [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 127, for " Commissioner " (w.e.f. 1.4.1988).] may, notwithstanding anything contained in [section 8] [ Substituted by Act 4of 1988, Section 154, for " section 10" (w.e.f. 1.4.1989).], authorise the said officer to take action under any of the clauses aforesaid in respect of such building, place, vessel, vehicle or aircraft.

(3)

The authorised officer may requisition the services of any police officer or of any officer of the Central Government, or of both, to assist him for all or any of the purposes specified in sub-section (1) or sub-section (2) and it shall be the duty of every such officer to comply with such requisition.

[(3-A) The authorised officer may, where it is not practicable to seize any books of account, other documents, money, bullion, jewellery or other valuable article or thing, for reasons other than those mentioned in the second proviso to sub-section (1), serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub¬section.

Explanation .-For the removal of doubts, it is hereby declared that serving of an order as aforesaid under this sub-section shall not be deemed to be seizure of such books of account, other documents, money, bullion, jewellery or other valuable article or thing under clause (iv) of sub-section (1).] [ Inserted by Act 4 of 1988, Section 154 (w.e.f. 1.4.1989).]

(4)

The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books of account or other documents, articles or things including money and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act.

[ Explanation .-For the removal of doubts, it is hereby declared that the examination of any person under this sub-section 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 matters relevant for the purposes of any investigation connected with any proceedings under this Act.] [Inserted by Act 4 of 1988, Section 154 (w.e.f. 1.4.1989). ]

(5)

Where any books of account or other documents, articles or things including money are found in the possession or control of any person in the course of a search, it may be presumed that¬-

(i) such books of account or other documents, articles or things including money belong to such person;

(ii) the contents of such books of account or other documents are true; and

(iii) the signature and every other part of such books of account or 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 that person's handwriting, and 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.

(i) estimating the undisclosed net wealth in a summary manner to the best of his judgment on the basis of such materials as are available with him;

(ii) calculating the amount of tax on the net wealth so estimated in accordance with the provisions of this Act;

(iii) determining the amount of interest payable and the amount of any penalty imposable in accordance with the provisions of this Act, as if the order had been the order of regular assessment;

(iv) specifying the amount that will be required to satisfy any existing liability under this Act in respect of which such person is in default or is deemed to be in default, and retain in his custody such assets or part thereof as are in his opinion sufficient to satisfy the aggregate of the amounts referred to in clauses (ii), (iii) and (iv) and forthwith release the remaining portion, if any, of the assets to the person from whose custody they were seized:

(6)

The books of account or other documents seized under sub-section (1) or sub-section (2) shall not be retained by the authorised 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 [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 27, for " Commissioner " (w.e.f. 1.4.1988).] for such retention in obtained:

Provided that the [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 27, for " Commissioner " (w.e.f. 1.4.1988).] shall not authorise the retention of the books of account or other documents for a period exceeding thirty days after all the proceedings under this Act in respect of the years for which the books of account or other documents are relevant are completed.

[(6-A) An order under sub-section (3-A) shall not be in force for a period exceeding sixty days from the date of the order, except where the authorised officer, for reasons to be recorded in writing by him, extends the period of operation of the order beyond sixty days, after obtaining the approval of the ] [Inserted by Act 4 of 1988, Section 154 (w.e.f. 1.4.1989). ][Director or, as the case may be, Commissioner] [ Substituted by Act 49 of 1991, Section 80, for " Chief Commissioner or Commissioner " (w.e.f. 1.10.1991).] [for such extension:

Provided that the ] [Inserted by Act 4 of 1988, Section 154 (w.e.f. 1.4.1989). ][Director or, as the case may be, Commissioner] [Substituted by Act 49 of 1991, Section 80, for " Chief Commissioner or Commissioner " (w.e.f. 1.10.1991). ] [shall not approve the extension of the period for any period beyond the expiry of thirty days after the completion of the proceedings under this Act in respect of the years for which the books of account, other documents, money, bullion, jewellery or other valuable articles or things are relevant.] [Inserted by Act 4 of 1988, Section 154 (w.e.f. 1.4.1989). ]

(7)

The person from whose custody any books of account or other documents are seized under sub-section (1) or sub-section (2) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by him in this behalf at such place and time as the authorised officer may appoint in this behalf.

(8)

Where the authorised officer has no jurisdiction over the person referred to in clause (a) or clause (b) or clause (c) of sub-section (1), the books of account or other documents seized under that sub-section shall be handed over by the authorised officer to the [Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer " (w.e.f. 1.4.1988).] having jurisdiction over such person within a period of fifteen days of such seizure and thereupon the powers exercisable by the authorised officer under sub-section (6) or sub-section (7) shall be exercisable by such [Assessing Officer] [ Substituted by Act 4 of 1988, Section 127, for " Wealth-tax Officer " (w.e.f. 1.4.1988).] .

(9)

If a person legally entitled to the books of account or other documents seized under sub-section (1) or sub-section (2) objects for any reason to the approval given by the Chief Commissioner or Commissioner under sub-section (6), he may make an application to the Board stating therein the reasons for such objection and requesting for the return of the book of account or other document.

[(9-A) If any person objects for any reason to an order made under sub¬-section (5-A), he may, within thirty days from the date of such order, make an application to the Chief Commissioner or Commissioner stating therein the reasons for such objection and requesting for appropriate relief in the matter.] [ Inserted by Act 4 of 1988, Section 154 (w.e.f. 1.4.1989).]

(10)

[ On receipt of the application under sub-section (9), the Board, or on receipt of the application under sub-section (9-A), the Chief Commissioner or Commissioner, may, after giving the applicant an opportunity of being heard, pass such orders as it or he thinks fit.] [ Substituted by Act 4 of 1988, Section 154, for sub-Section (10)(w.e.f. 1.4.1989).]

(11)

The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches shall apply, so far as may be, to searches under this section.

(12)

The Board may make rules in relation to searches or seizure under this section; and in particular and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer-

(i) for obtaining ingress into any building, place, vessel, vehicle or aircraft to be searched where free ingress thereto is not available;

(ii) for ensuring the safe custody of any books of account or other documents seized.