Transcript Document

Surveys under Income Tax
Presentation by
SANJAY JHANWAR, ADVOCATE
CHIR AMRIT LAW CHAMBERS
JAIPUR
Statutory Provisions
Sec 133A
CEREMONIAL SURVEY
(Sub Section 5)
BUSINESS SURVEY
(Sub Sec 1 to 4)
Sec 133B
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MASS SURVEY
Business Survey
Who can do Survey:
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Authorised officer having jurisdiction over place /
person.
OR
Other officer authorised by such officer (including
inspector authorised by such officer.
Provided the Asst. Director, Dy. Director, AO, TRO &
inspector can exercise the powers of survey only with the
prior approval of Jt. Comm or Jt. Director or higher
authority as the case may
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Business Survey…..
When …
Where …
During business
hours at the place of
business
At Business Place
and
Between sunrise &
sunset at other
places
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(may not be principal place)
or where
Books/cash/ stock
etc. stated to be kept
Business Survey…….
Powers of Authorized persons
 Placing marks of identification on & making or
causing to make copies, extracts from
books/documents.
 Taking inventory of cash/stock/valuables.
 Recording statements (Not on oath).
 Impound Books of accounts & other documents
But no power to remove cash, stock, other valuables.
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Business Survey ......
Obligation of Tax Payer during
Survey to afford the facility
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To Inspect available books / documents required.
To check / verify cash, stock or other valuables
found.
To furnish relevant information.
If not provided or in case of refusal for statements, all
powers u/s 131(1) including conversion into search
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Ceremonial Survey
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Having regard to nature & scale of expenditure
After the event only
Power to require information
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From assessee
From any other person likely to possess the same
Utilization of information as evidence in further
proceedings.
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Mass Survey (Sec. 133B)
Object:
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Collection of Information.
To locate new assessee and thereby unearth black
money.
Persons who have been avoiding from coming
into the tax net are brought into the mainstream,
through a shop to shop or house to house survey.
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Confessions during Survey
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Surrender for capitalization
No Surrender for earlier period
Corroborative Confessions
Contradiction in statements
Retraction of Confession
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Difference in Stock
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Excess stock
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Shortage in stock
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Difference in valuation
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Papers & Documents
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With date vis-à-vis without date
Complete vis-à-vis Incomplete
Amounts in coded form
Ownership
Reconciliation with Books
More than one record of the transaction
Very old documents/ papers
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Conversion of Survey into Search
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If during the survey operation, information comes
to the department which leads to formation of a
reasonable belief that the conditions authorizing
action u/s 132(1) exist, the department has right to
take action u/s 132.
Conversion of survey into search without
independent application of mind was held as
illegal.
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Levy of Penalty for Concealment
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Current Year
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Preceding Years
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Adhoc Surrender
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Corroborative Surrender
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Other Important Issues
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Taking cheques of tax payment
Copies of statements and impounded documents
Telescoping and peak theory
Retraction of confessions
Post survey filing / revising of returns
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