Draft Income Tax Rule 149 – Procedure to requisition services under section 247(5) and to make a reference under section 247(9) of the Act
Rule 149 of the Draft Income-tax Rules, 2026 prescribes the procedure for requisitioning services under section 247(5) and making references under section 247(9). It empowers the Principal Chief Commissioner, Chief Commissioner, Principal Director General, or Director General to approve persons, entities, registered valuers, or specified officers such as Valuation Officers, whose services may be requisitioned for search-related purposes. Approval may be granted based on an application in Form No. 85, a departmental reference, or suo motu action. Such applications must be disposed of within six months from the end of the month in which they are made, either granting or rejecting approval. Upon approval, a Designated Approval Number—an alphanumeric identifier—is issued to the concerned person, entity, or registered valuer. The authorised officer may requisition services or make references only to approved persons; however, in cases of necessity or expediency, services of a non-approved person may be requisitioned after recording reasons, subject to obtaining approval from the competent authority within thirty days. The rule defines a “registered valuer” as one registered under any law in force. Overall, the provision creates a formal approval and monitoring framework to ensure regulated engagement of experts and entities during search and seizure proceedings.
Extract of Rule No. 149 of Draft Income-tax Rules, 2026
Rule 149
Procedure to requisition services under section 247(5) and to make a reference under section 247(9) of the Act.
(1) Every Principal Chief Commissioner or the Chief Commissioner or the Principal Director General or the Director General, as the case may be, may approve-
(i) any person or entity whose services may be requisitioned for the purposes of section 247(5); or
(ii) the Valuation Officer, the person registered under section 514, or any person or entity or registered valuer to whom reference may be made for the purposes of section 247(9)
on the basis of an application made by such person or entity or registered valuer, or on a reference made by Joint Director or Joint Commissioner or Additional Director or Additional Commissioner or Director or Commissioner or Principal Director or Principal Commissioner, or on his own motion.
(2) The authorised officer, as referred to in section 247(5) or section 247(9), may requisition the services of or make a reference to one or more of the persons approved under sub-rule (1), for the purposes of section 247(5) or section 247(9).
(3) The application referred to in sub-rule (1) shall be made in Form No. 85.
(4) The application referred to in sub-rule (3) shall be disposed of by the Principal Chief Commissioner or the Chief Commissioner or the Principal Director General or the Director General, as the case may be, within six months from the end of the month in which such application is made thereby granting approval or rejecting the same.
(5) The Principal Chief Commissioner or Principal Director General or Chief Commissioner or Director General may, on grant of approval to a person or entity or registered valuer as provided in sub-rule (1), shall issue a Designated Approval Number to such person or entity or registered valuer, as the case may be.
(6) For the purposes of section 247(5) or section 247(9), in a case where the authorised officer considers it necessary or expedient to do so, he may requisition the services of or make a reference to a person or entity or registered valuer who is not approved as per sub-rule (1), after recording reasons for the same, and within a period of thirty days of such requisition, obtain approval of the Principal Chief Commissioner or the Chief Commissioner or the Principal Director General or the Director General, as the case may be.
(7) For the purposes of this rule, “registered valuer” means any valuer registered by or under any law for the time being in force.
(8) For the purposes of sub-rule (5) of this rule, a “Designated Approval Number” means a number so issued, having alphanumeric characters.
