In the Union Budget 2023-24 through Finance Bill 2023, among other tax measures, the Finance Minister recommended significant though few changes relating to Income Tax Search and Seizure provisions
Section 132 of the Income Tax Act makes provisions related to search and seizure.
The Union Budget 2023 proposed to substitute sub-section (2) of Section 132 of the Income Tax Act so as to provide that the authorised officer, during the course of search, may requisition the services of any police officer or of any officer of the Central Government, or of both, or other person or entity
The approval for requisition should be made by the Principal Chief Commissioner or the Chief Commissioner, the Principal Director General or the Director General, in accordance with the procedure as may be provided by rules by the Board in this regard, to assist him for the purposes of the search and it shall be the duty of such officer or person or entity to comply with such requisition.
The Budget 2023 also proposed to substitute sub-section (9D) of Section 132 of the Income Tax Act to provide that, the authorised officer, during the course of a search or within sixty days from the date of the last authorisation, may make a reference to a Valuation Officer referred to in section 142A or any other person or entity or any valuer registered by or under any law for the time being in force.
The approval should be made by the Principal Chief Commissioner, the Chief Commissioner, the Principal Director General or the Director General, in accordance with the procedure laid down by the Board in this regard, who shall estimate the fair market value of the property in the manner as may be provided by rules, and submit a report of the estimate to the authorised officer or the Assessing Officer, as the case may be, within sixty days from the receipt of such reference.
In the recent past, due to the increased use of technology and digitisation in the procedure for search and seizure has become complex, requiring the use of data forensics, advanced technologies for decoding data etc., for complete and proper analysis of accounts.
Similarly, there is an increasing trend of undisclosed income being held in a vast variety of forms of assets or investments in addition to immovable property. Valuation of such assets and decryption of information often require specific domain experts like digital forensic professionals, valuers, archive experts hence the proposed amendment becomes beneficial.
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