In a recent inquiry posed to the Ministry of Finance by Dr. K. Jayakumar in Lok Sabha Unstarred Question No. 2486, the focus turned to the intriguing realm of Income Tax (IT) operations, specifically the term colloquially known as “raids.” Scheduled for response on Monday, the 18th of December, 2023, the question sought clarity on the number of IT raids conducted on business establishments and the subsequent legal actions taken during the fiscal years 2019-20 to 2022-23.
The Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, in his response, delineated that the term ‘raid’ finds no explicit mention in the Income Tax Act, 1961. However, he provided comprehensive details regarding search and seizure actions, particularly those targeting business establishments, and the resulting legal actions taken by the Income Tax Department during the specified fiscal years. The response includes key metrics such as the number of groups searched, the value of assets seized, and the prosecutions initiated. Additionally, Shri Pankaj Chaudhary elucidates on the finalization of tax assessments and the conclusive crystallization of income and tax demands, a process contingent upon the resolution of appeals before various adjudicatory authorities. The ensuing analysis delves into the specifics of these data points, shedding light on the government’s efforts to ensure tax compliance and integrity.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 2486
TO BE ANSWERED ON MONDAY, 18TH DECEMBER, 2023/
AGRAHAYANA 27, 1945 (SAKA)
I.T. RAIDS
2486.DR. K. JAYAKUMAR:
Will the Minister of FINANCE be pleased to state:
(a) the number of Income Tax (IT) raids conducted on business establishments from 2019-20 to 2022-23; and
(b) the number of raids out of them that resulted in prosecution and the amount recovered therefrom?
ANSWER
MINISTER OF STATE IN MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b) : There is no expression such as ‘raid’ in the Income Tax Act’ 1961 [the Act].
The details of the search and seizure actions, including those mounted on business establishments, and prosecutions launched in search & seizure cases, by the Income Tax Department during the F.Ys. 2019-20 to 2022-23 is as under:
| F.Y. | No. of groups searched | Value of assets seized (in Rs. Crore) | No. of Prosecutions launched |
| 2019-20 | 984 | 1289.47 | 365 |
| 2020-21 | 569 | 880.83 | 145 |
| 2021-22 | 686 | 1159.59 | 115 |
| 2022-23 | 741 | 1765.56 | 97 |
On the basis of the evidence gathered during search operation and subsequent investigation, tax-assessments are finalized and a tax demand is raised. The income assessed and the tax thereupon, get crystallised conclusively when appeals, if any, preferred before CIT(A), ITAT, Hon’ble High Court and Hon’ble Supreme Court are decided.
