(1) The Investigating Income Tax Authority may exercise the power of search and seizure of any person's information as provided in the sub-sections below if the Board or the Investigating Income-tax Authority has reason to believe on any information that

(a)   any person who has been required by any summons or notice under this Act to supply or produce records relating to income, assets and liabilities, but such person has failed to supply or produce the same;

(b)   the person referred to in clause (a) is not likely to supply or produce records relating to income, assets and liabilities; or

(c)   by reason of the issue of any summons or notice under this Act or the preparation of any record relating to income for production, such records relating to income have failed or are likely to fail to be produced or produced.

(2) The Investigating Income Tax Authority, not below the rank of Assistant Commissioner of Taxes, may delegate the duty of conducting search and seizure under this section to any such officer (hereinafter referred to as the authorized officer).

(3) Notwithstanding anything contained in any other law for the time being in force, the authorized officer may take the following steps, namely: -

(a)   by entering any building, place, ship, vehicle or aircraft, where there is reason to suspect, search any records, money, precious metals, jewelry, or other valuable articles or things relating to any income referred to in sub-section (I) or kept in custody;

(b)   break-open the lock of any door, box, locker safe, almirah or other receptacle for the purpose of the said entry, and search, if keys thereof are not available;

(c)   search any such person who has exited or is about to exit, or remains in, any building, place ship, vehicle or aircraft, if there is reason to suspect that such person may have access to its accounts, documents, electronic records and systems; has concealed money, precious metals jewelry or any other valuable article;

(d)   seize any such books of accounts, documents, electronic records and systems, money, bullion, jewelry or other valuable article or thing found as a result of such search;

(e)   place marks of identification on or stamp any books of accounts or other document or make or cause to be made extracts or copies therefrom; and

(f)    make a note or an inventory of any such money, bullion, jewelry or other valuable article or thing;

(g)   retrieving information, images or any data stored in electronic records and systems or entering password security or copying or analyzing income information.

(4) The authorized officer may seek the assistance of any police officer or any Government officer or any professional expert to assist him for all or any of the purposes mentioned in sub-section (2); and can seek services; and if assistance is so sought it shall be the duty of such Officer or professional expert to render the assistance sought.

(5) Where it is not possible to seize any income   records, money, precious metals, jewelry or other valuable articles or things, the authorized officer may, by order in order the owner or any person in possession or control thereof to order that the not remove, divert or otherwise dispose of it without permission; And the authorized officer may take such steps as may be necessary to carry out the order:

Provided that if, without reasonable cause, the owner or any person fails to comply with the provisions of this sub-section and if the precious metal, jewelry, valuable article or thing is transferred, or removed, diverted or otherwise disposed of, such owner or person may be identified by the Deputy Commissioner of Taxes as the owner and such person shall be deemed to be a tax defaulter under this Act.

(6) During the search or seizure by the authorized officer, any statement made on oath by any person who is in the possession or control of any record, money, precious metal, jewelry or other valuable article or thing during the examination and in the possession or control of any person in any proceeding under this Act can be used in evidence.

(7) Where any revenue record, money, precious metal jewelry or other valuable article or thing is found in the possession or control of any person during a search, it shall be deemed that—

(a)   records relating to income, money, precious metals, jewelry, objects or articles belonging to such person; 

(b)   the facts on record relating to income; and

(c)   the signature or handwriting given on any such account or document shall be deemed to be the signature or handwriting of the person whose signature or handwriting should appear.

(8) Any record relating to income from whose custody any record relating to income is seized under sub-section (2) shall be copied or abstracted from him in his presence or in the presence of any other person appointed for that purpose at the place and time fixed by the authorized officer.

(9) The Board may make rules in respect of the following matters, namely: -

(a)   Regarding the procedure to be followed by the authorized officer-

(i)    open access for search to any building, place, vessel, vehicle or aircraft to which there is no right of entry; and 

(ii)  for the safe custody of seized goods; and

(b)   any other matter relating to search and seizure under this section.

(10) Subject to the provisions of this Act and the rules, if any, made in this behalf by the Board, the provisions of the Code of Criminal Procedure, 1898 (Act No. V of 1898), relating to search and seizure shall apply, so far as may be, to search and seizure under this sub-section.

(11) For the purpose of section, the term “proceedings” means any proceedings under this Act in any year which are not due on or completed on or before the date authorized for any search under this section and all proceedings under this Act which in any year commence after such date. It will include what has happened.