(1) For the purpose of surveying the tax liability of a person under this Act, the Board or the Commissioner of Taxes may delegate the power to any income tax authority to visit and survey any lace or premises where business is carried on or come is generated by payment of rent.

(2) The Income Tax Authority shall enter the place referred to sub-section (l) in the following cases namely: -

(a)   if the business is carried on in the said place only during the time when the said place is open for business; and

(b)   in any other case, only after sunrise and before sunset.

(3) On entering the place referred to in sub-section (2), the Income Tax Authority shall take the following steps, viz.

(a)   collect summaries or copies of records relating to income, assets and liabilities which have been inspected by the authority giving marks of inspection;

(b)   the seizure and taking into custody of records relating to the income inspected thereby;

(c)   inventory of cash, money deposits or valuables;

(d)   examine the statement of any person under oath if relevant to any proceedings under this Act; and

(e)   Any other necessary investigation.

(4) Every owner, salaried employee or other person who carries on a business, or any person who resides in any such place or premises as may be exercised by the Income Tax Authority under sub-section (l) shall assist the Authority in the exercise of such authority or power as follows: -

(a)   The Authority shall take necessary measures to carry out the following functions:

(i)    inspect and enter records relating to income, assets and liabilities, or

(ii)  verify, select and examine cash, stock or any other valuables or things received at such place or premises; and

(b)   supply necessary information to the authority on any matter appropriate or relevant to any proceedings under this Act.

(5) A statement given by a person under clause (d) of sub-section (8) shall be used as evidence in any proceeding under this Act.

(6) In the application of this section, the Income Tax Authority shall not remove any cash, stock or other valuables or things from the place or premises entered.

(7) The Income-tax Authority shall not, except with the approval of the Commissioner of Taxes, keep in his custody records relating to income seized under this section for a period exceeding 1 (one) month.

(8) Any income tax authority other than the Inspector of Taxes shall have all the powers to apply sub-section (1) of section 223 if any person is unable or disobeys to perform the following acts, namely: -

(a)   to provide assistance to the Income Tax Authority for examination of accounts or other documents;

(b)   allowed to search or examine any cash, stock or other valuables or objects;

(c)   providing any information; or

(d)   providing records or statements.