pri Detection of substantial unaccounted cash & other valuables during surveys under section 133A of Income Tax Act, 1961 Detection of substantial unaccounted cash & other valuables during surveys under section 133A of Income Tax Act, 1961

F.No.414/16/2014-IT(INV.1)
Government Of India
Ministry Of Finance
Department of Revenue
Central Board of Direct Taxes

Room No.269, North Block
New Delhi, dated 30th September, 2014

To

All Principal Chief Commissioners of Income Tax (CCA),
All Directors General of Income Tax (Investigation),
Principal Chief Commissioners of Income Tax (International Taxation)
Director General of Income Tax (Intelligence & Criminal Investigation)
Chief Commissioners of Income Tax (Exemption)

Sub: Detection of substantial unaccounted cash and other valuables during surveys under section 133A of the Income Tax Act, 1961— regarding.

Madam/Sir,

Kind reference is invited to the above subject.

2. In this regard, I am directed to state that instances have come to the notice of the Board where despite detection of considerable unaccounted cash and other valuables during the course of survey under section 133A of the Income Tax Act, 1961 [the Act], Investigation Directorate concerned was not informed to consider appropriate action as per the provisions of section 132 of the Act.

3. In this context, I am directed to invite your attention to paragraph 31 of Chapter III of the Survey Manual, 2007 which reads as follows:-

“Details of cash lying at the business premises should be ascertained through the preliminary statement because in cases of considerable amount of unaccounted cash in hand, the survey can be converted into search. Conversion of a survey operation into a search operation will have implications not only of cash seizure but also covering the residential premises of partners/directors of the business concern. If it is considered necessary to convert a survey operation into a search operation, a satisfaction note should be prepared by the jurisdictional Additional/Joint Commissioner, in consultation with the jurisdictional Commissioner of Income Tax, and sent to the DIT(Inv.) concerned for issue of warrant of authorization.”

4. It may be noted that section 132(1)(c) of the Act states that if any person is in possession of any money, bullion, jewellery or other valuable articles or thing and such money, bullion, jewellery or other valuable articles or thing represents either wholly or partly income or property which has not been, or would not be, disclosed for the purposes of the Act, then the DGIT(Inv.) / DIT(Inv.) concerned is empowered to authorize search and seizure.

5. While the issue of converting a survey into search has to be decided after careful consideration of facts and circumstances of the case in hand. It is necessary that whenever undisclosed cash and other valuables of amount equal to or exceeding the limit, as given below in the Table, is found during a survey, the DIT(Inv.) concerned having territorial jurisdiction over the surveyed premise may be intimated compulsorily at the earliest possible to examine the facts for taking recourse to section 132(1) of the Act.

(1) Limit for Surveys conducted in Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Pune, Bangalore & Hyderabad (2) Limit for Surveys conducted in places other than mentioned in Col.(1)
Rs. 15 lakhs Rs. 10 lakhs

6. It is clarified that, where the undisclosed cash and other valuables found during the survey below the limits, prescribed in the above table, suitability of intimating the same to DIT (Inv.) concerned may be examined by the CIT concerned on case to case basis.

7. This may be brought to the notice of all officers in your region for strict compliance.

8. This issue with the approval of Member(Inv.) and Chairman, CBDT.

Yours Faithfully

Sd-
(Amit Mohan Mittal)
Under Secretary (Inv.’)
Tel : 23095464
Fax : 23092802

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