Income Tax Survey

Income Tax Survey – Frequently Asked Questions

Income Tax - Q1. Whether notice is required to be issued to the assessee before initiating survey? No, the section does not require prior notice of the survey to be given to the affected person - N.K. Mohnot v. Dy. CIT [1995] 215 ITR 275/83 Taxman 238 (Mad.). Q2. Which are the authorities empowered to conduct a survey? Section 133A of the Income-tax...

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Income Tax raid- What to do?

Income Tax - Our Income Tax law allows all persons to self-assess their income and pay taxes. However, to protect the revenue base, unearth concealed income and to act as a deterrent, tax authorities have been vested with powers to conduct surveys and searches (commonly referred to as ‘raids’). These raids are made the basis of information availab...

Read More

Can Income Tax survey be converted into Search & Seizure

Income Tax - Whether an Income Tax survey proceedings u/s 133A of the Income Tax Act’1961 can be converted into an Income Tax Search and Seizure action u/s 132 of the Income Tax Act ‘1961 I. Introduction: It is seen in practice that in course of search and seizure action on large business houses u/s 132 of the […]...

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Income Tax RAID – understanding Survey Vs. Search

Income Tax - Often termed as Raid by laymen, income tax survey and search are becoming increasingly common as businesses continue to grow. Apparently, there is no word called raid in the Income Tax Act. The two important tools which the department uses are survey and search and when one or both of these two operations get initiated, people term it as ...

Read More

Survey under section 133A of income tax act 1961

Income Tax - Survey in a wider sense means to scrutinize or to inspect. The power of survey under the Income tax Act has been provided U/S 133A and 133B. The provisions contained in section 133A are independent and to the exclusion of the other provisions of the act since the wording of the section starts with ‘Notwithstanding anything contained in ...

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Income Tax Surveys unearths huge defaults in TDS deduction & deposit

Income Tax - Ministry of Finance TDS Surveys by Income Tax Department unearths huge defaults in deduction and deposit Posted On: 04 MAR 2020 In a major breakthrough, the Tax Deducted at Source (TDS) wing of the Income Tax Department has unearthed default of TDS of Rs 324 crore in the case of a major Telecom Operator in […]...

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Major Achievements of CBDT in Current Financial Year 2016-17

Income Tax - Major Achievements of CBDT in Current Financial Year 2016-17 so far include among others Enactment of The Benami Transactions (Prohibition) Amendment Act, 2016, Implementation of The Direct Tax Dispute Resolution Scheme, 2016 and of GAAR from Assessment Year 2018-19;...

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Income Tax Employees strike – I-T survey operations hit in Delhi

Income Tax - The crucial survey operations conducted by the Income Tax department to detect tax evasion have been severely hit due to a long drawn employees agitation in the national capital. I-T employees and officials, except those of the Indian Revenue Service (IRS), have been agitating to press their demands including to review their cadre and pro...

Read More

Income Tax department unearths tax evasion of Rs 18 crore in its surveys in small districts

Income Tax - In a first of its kind action in the state, the Income Tax department has conducted surveys in small districts and unearthed tax evasion to the tune of close to Rs 18 crore. The department recently conducted a special drive and conducted raids at the business premises of firms in Tikamgarh district and found Rs 8 crore of undisclosed inc...

Read More

I-T sleuths to hand over boss's number before raid / Survey

Income Tax - The next time an Income Tax team raids your business premise they will not seize anything but instead leave the name and contact number of their boss with you. The I-T team will do so even before they begin the raid and the step has been taken to do away with any grievance related to harassment or corruption by I-T officials under the gar...

Read More

If section 69 not invoked by AO in Order u/s 143(3) then section 115BBE can’t invoked for rectification u/s 154

ACIT Vs Shri Sudesh Kumar Gupta (ITAT Jaipur) - whether CIT(A) is justified in quashing the action of the AO u/s 154 of the Act in applying provision of section 115BBE of the IT Act on undisclosed investment surrendered during the course of survey proceedings?...

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No section 271C penalty for non-deduction of TDS on LTA

State Bank of India Vs Addl. CIT (ITAT Bangalore) - The issue under consideration is whether the AO is correct in levying penalty u/s 271C of the Act for non-deduction of tax at source on Leave Travel Allowance?...

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No addition for gifts if Assessee proves Identity, capacity & genuineness of donor

Dr. Vempala Bala Manohar Vs ITO (ITAT Visakhapatnam) - Gifts are normally made by relatives out of natural love and affection and do not necessarily require any particular occasion. Assessee had discharged his burden by furnishing necessary details before AO. In the absence of anything to show that the transactions were by way of money laundering, ...

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Addition not maintainable on the basis of mere statement recorded during survey

Rohitaswa Das Vs ACIT (ITAT Kolkata) -  Statement recorded during survey, under section 133A, does not have a evidentiary value on its own and, therefore, no addition was maintainable on the basis of statement recorded during the course of survey as there was no evidence supporting the statement....

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Adverse material collected or found during survey can be utilised in Block Assessment

Commissioner of Income Tax Vs S. Ajit Kumar (Supreme Court of India) - CIT Vs S. Ajit Kumar (Supreme Court of India) The power of survey has been provided under Section 133A of the IT Act. Therefore, any material or evidence found/collected in a Survey which has been simultaneously made at the premises of a connected person can be utilized while making the Block Assess...

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CBDT issues guideline on power of survey under section 133A

Order No. F No. 187/3/2020-ITA-I - (19/10/2020) - Order under section 119 of the Income-tax Act, 1961 for exercising power of survey u/s 133A of the Income-tax Act, 1961 and in pursuance of The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 Regarding...

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CBDT issues guidelines for intrusive or coercive tax recovery

F.No. 275/29/2020-IT(B) - (16/10/2020) - Any coercive or intrusive action for recovery of tax demands should be taken only after exhausting alternative means of recovery as mentioned in Para 2((i) of Board's letter F.No. 275/29/2020-(IT(B) dated 21st September, 2020....

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Income Tax department issued survey guidelines

F No. 187/3/2020-ITA-I - (18/09/2020) - Before approving any Income Tax survey action by Pr. CCsIT/ Pr. DGsIT/CCsIT/DGsIT must ensure that all the other possibilities are exhausted and the survey action has to be resorted to only as a last resort....

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CBDT notifies officers who can do survey under section 133A

F No. 187/3/2020-ITA-I - (13/08/2020) - CBDT directs that the officers posted in Directorates of Investigation (Investigation Wing) and Commissionerates of TDS, only and exclusively shall act as Income-tax Authority for the purposes of power of survey under section 133A of the Income-tax Act....

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Directions for forwarding pending survey /verification report- Reg.

F.No. 225/282/2018/ITA.II - (19/09/2018) - Vide Instruction No. 4/2018 dated 20.08.2018 issued in file of even no., CBDT has laid down Guidelines for selection of scrutiny cases during the financial-year 2018-19....

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Recent Posts in "Income Tax Survey"

Income Tax Survey – Frequently Asked Questions

Q1. Whether notice is required to be issued to the assessee before initiating survey? No, the section does not require prior notice of the survey to be given to the affected person - N.K. Mohnot v. Dy. CIT [1995] 215 ITR 275/83 Taxman 238 (Mad.). Q2. Which are the authorities empowered to conduct a survey? Section 133A of the Income-tax...

Read More
Posted Under: Income Tax |

CBDT issues guideline on power of survey under section 133A

Order No. F No. 187/3/2020-ITA-I (19/10/2020)

Order under section 119 of the Income-tax Act, 1961 for exercising power of survey u/s 133A of the Income-tax Act, 1961 and in pursuance of The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 Regarding...

Read More

CBDT issues guidelines for intrusive or coercive tax recovery

F.No. 275/29/2020-IT(B) (16/10/2020)

Any coercive or intrusive action for recovery of tax demands should be taken only after exhausting alternative means of recovery as mentioned in Para 2((i) of Board's letter F.No. 275/29/2020-(IT(B) dated 21st September, 2020....

Read More

Income Tax department issued survey guidelines

F No. 187/3/2020-ITA-I (18/09/2020)

Before approving any Income Tax survey action by Pr. CCsIT/ Pr. DGsIT/CCsIT/DGsIT must ensure that all the other possibilities are exhausted and the survey action has to be resorted to only as a last resort....

Read More

Income Tax raid- What to do?

Our Income Tax law allows all persons to self-assess their income and pay taxes. However, to protect the revenue base, unearth concealed income and to act as a deterrent, tax authorities have been vested with powers to conduct surveys and searches (commonly referred to as ‘raids’). These raids are made the basis of information availab...

Read More
Posted Under: Income Tax | ,

CBDT notifies officers who can do survey under section 133A

F No. 187/3/2020-ITA-I (13/08/2020)

CBDT directs that the officers posted in Directorates of Investigation (Investigation Wing) and Commissionerates of TDS, only and exclusively shall act as Income-tax Authority for the purposes of power of survey under section 133A of the Income-tax Act....

Read More

Can Income Tax survey be converted into Search & Seizure

Whether an Income Tax survey proceedings u/s 133A of the Income Tax Act’1961 can be converted into an Income Tax Search and Seizure action u/s 132 of the Income Tax Act ‘1961 I. Introduction: It is seen in practice that in course of search and seizure action on large business houses u/s 132 of the […]...

Read More
Posted Under: Income Tax |

If section 69 not invoked by AO in Order u/s 143(3) then section 115BBE can’t invoked for rectification u/s 154

ACIT Vs Shri Sudesh Kumar Gupta (ITAT Jaipur)

whether CIT(A) is justified in quashing the action of the AO u/s 154 of the Act in applying provision of section 115BBE of the IT Act on undisclosed investment surrendered during the course of survey proceedings?...

Read More

No section 271C penalty for non-deduction of TDS on LTA

State Bank of India Vs Addl. CIT (ITAT Bangalore)

The issue under consideration is whether the AO is correct in levying penalty u/s 271C of the Act for non-deduction of tax at source on Leave Travel Allowance?...

Read More

No addition for gifts if Assessee proves Identity, capacity & genuineness of donor

Dr. Vempala Bala Manohar Vs ITO (ITAT Visakhapatnam)

Gifts are normally made by relatives out of natural love and affection and do not necessarily require any particular occasion. Assessee had discharged his burden by furnishing necessary details before AO. In the absence of anything to show that the transactions were by way of money laundering, ...

Read More

Income Tax RAID – understanding Survey Vs. Search

Often termed as Raid by laymen, income tax survey and search are becoming increasingly common as businesses continue to grow. Apparently, there is no word called raid in the Income Tax Act. The two important tools which the department uses are survey and search and when one or both of these two operations get initiated, people term it as ...

Read More
Posted Under: Income Tax |

Survey under section 133A of income tax act 1961

Survey in a wider sense means to scrutinize or to inspect. The power of survey under the Income tax Act has been provided U/S 133A and 133B. The provisions contained in section 133A are independent and to the exclusion of the other provisions of the act since the wording of the section starts with ‘Notwithstanding anything contained in ...

Read More
Posted Under: Income Tax | ,

Income Tax Surveys unearths huge defaults in TDS deduction & deposit

Ministry of Finance TDS Surveys by Income Tax Department unearths huge defaults in deduction and deposit Posted On: 04 MAR 2020 In a major breakthrough, the Tax Deducted at Source (TDS) wing of the Income Tax Department has unearthed default of TDS of Rs 324 crore in the case of a major Telecom Operator in […]...

Read More
Posted Under: Income Tax |

Budget 2020 Provides check on Section 133A survey operations

Budget 2020– Under the existing provisions of section 133A of the Act, an income-tax authority as defined therein is empowered to conduct survey at the business premises of the assessee under his jurisdiction. To prevent the possible misuse of such powers, vide Finance Act 2003, a proviso to sub-section (6) in the said section was [...

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Posted Under: Income Tax |

‘Taxpayer’s Parade’: Beware of Anti-Tax Evasion Weapons

Krishna, on 26th January, India celebrates its Republic Day. Over the past few months GST and Income Tax departments have been sending notices to the taxpayers to increase the collection of Revenue. Please tell what are the weapons that department is using to take the Taxpayer’s parade?...

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Posted Under: Income Tax |

Scope of Section 115BBE and applicability in survey U/S 133A

115BBE. Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D.—(1) Where the total income of an assessee includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D, the income-tax payable shall be the aggregate of...

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Posted Under: Income Tax |

Addition not maintainable on the basis of mere statement recorded during survey

Rohitaswa Das Vs ACIT (ITAT Kolkata)

 Statement recorded during survey, under section 133A, does not have a evidentiary value on its own and, therefore, no addition was maintainable on the basis of statement recorded during the course of survey as there was no evidence supporting the statement....

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Survey Provisions in Income Tax- Section 133A

Section 133A(1): Any place at which a business or profession or an activity for charitable purpose is carried on, whether such place be the principal place or not of such business or profession or charitable activity, notwithstanding any other provision of this Act, an income tax authority may enter – i. any place within the […]...

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Posted Under: Income Tax |

Directions for forwarding pending survey /verification report- Reg.

F.No. 225/282/2018/ITA.II (19/09/2018)

Vide Instruction No. 4/2018 dated 20.08.2018 issued in file of even no., CBDT has laid down Guidelines for selection of scrutiny cases during the financial-year 2018-19....

Read More

Issues which may invite TDS surveys & inspections

Checking avoidance of TDS/ TCS liability in respect of the following payment,/ transactions; 1. Payment for purchase of land under sale deed by project implementing authorities towards compulsory land acquisition for SEZs/public utilities implemented under Fast Track procedure where the implementation is not done directly by state govern...

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Posted Under: Income Tax |

Adverse material collected or found during survey can be utilised in Block Assessment

Commissioner of Income Tax Vs S. Ajit Kumar (Supreme Court of India)

CIT Vs S. Ajit Kumar (Supreme Court of India) The power of survey has been provided under Section 133A of the IT Act. Therefore, any material or evidence found/collected in a Survey which has been simultaneously made at the premises of a connected person can be utilized while making the Block Assessment in respect of […]...

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Interest U/s. 234B / 234C cannot be levied for period prior to date of survey on Income declared during Survey

Emem Freight Forwarders Vs Dy. CIT (ITAT Mumbai)

Emem Freight Forwarders Vs Dy. CIT (ITAT Mumbai)  Section 210 of the Act requires the assessee to pay advance tax at his own or in pursuance of the order of the assessing officer on or before each of the due dates specified under section 211 of the Act. In the instant case, the assessment year […]...

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Unrecorded stock of rice noticed during survey is Business Income

Pr. CIT Vs Bajargan Traders C/o. Kalani & Co. (Rajasthan High Court)

(i) Whether the Tribunal was legally justified in reversing the findings of the Commissioner (Appeals) and deleting the addition of Rs. 70,04,814 which was surrendered by the assessee by holding that such amount was included in the purchases and was reflected in the sales and closing stock...

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Budget 2017 extends power of survey to charitable activity place

The existing provisions of section 1 33A empower an income-tax authority to enter any place, at which a business or profession is carried on, or at which any books of account or other documents or any part of cash or stock or other valuable article or thing relating to the business or profession are kept, for the purposes of conducting a ...

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Posted Under: Income Tax |

Major Achievements of CBDT in Current Financial Year 2016-17

Major Achievements of CBDT in Current Financial Year 2016-17 so far include among others Enactment of The Benami Transactions (Prohibition) Amendment Act, 2016, Implementation of The Direct Tax Dispute Resolution Scheme, 2016 and of GAAR from Assessment Year 2018-19;...

Read More
Posted Under: Income Tax |

Statement U/s.133A have no evidentiary value if recorded by officer not empowered to

Shri Sanjay R. Shah Vs. ITO (ITAT Ahmedabad)

If the officer is not empowered to administer oath, then by scoring off the sections in the heads of the stationery would not authorize officer to administer oath and take statement under section 131 of the Income Tax Act, 1961 during the survey. Therefore, this statement is only a piece of information, and does not carry any evidentiary...

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Mere Statement recorded during survey cannot be the sole basis for making addition

DCIT Vs M/s Amrapali Homes (ITAT Delhi)

A survey proceedings was carried out in the middle of the accounting year (on 1.12.2006) in the case of AHS Joint Venture, the sister concerns of the assessee firm. During the course of survey there was no incriminating material nor undisclosed income found in the hands of the assessee...

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Budget 2014 Grants Power of Survey for verification of TDS defaults

Power of survey The existing provision contained in section 133A of the Act enables the Income-tax authority to enter any premises in which business or profession is carried out for the purposes of survey. An income-tax authority acting under this section may impound and retain in his custody any books of account or documents inspected [&...

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Posted Under: Income Tax | ,

No increase in Income Tax raid and survey in current Financial Year – Govt

PRESS NOTE 402/92/2006-MC (32 OF 2011) (22/12/2011)

It is informed that under the Income Tax Act, search and seizure is conducted on the basis of specific and credible information regarding tax evasion, and after conducting necessary verification. Information technology tools, such as CASS and ITDMS, have been developed and are being extensively utilized by the Income Tax department to uno...

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Income Tax Employees strike – I-T survey operations hit in Delhi

The crucial survey operations conducted by the Income Tax department to detect tax evasion have been severely hit due to a long drawn employees agitation in the national capital. I-T employees and officials, except those of the Indian Revenue Service (IRS), have been agitating to press their demands including to review their cadre and pro...

Read More
Posted Under: Income Tax |

Income Tax department unearths tax evasion of Rs 18 crore in its surveys in small districts

In a first of its kind action in the state, the Income Tax department has conducted surveys in small districts and unearthed tax evasion to the tune of close to Rs 18 crore. The department recently conducted a special drive and conducted raids at the business premises of firms in Tikamgarh district and found Rs 8 crore of undisclosed inc...

Read More
Posted Under: Income Tax |

I-T sleuths to hand over boss's number before raid / Survey

The next time an Income Tax team raids your business premise they will not seize anything but instead leave the name and contact number of their boss with you. The I-T team will do so even before they begin the raid and the step has been taken to do away with any grievance related to harassment or corruption by I-T officials under the gar...

Read More
Posted Under: Income Tax | ,

Appraisal report of survey team assist in making final assessment but that itself cannot become a final assessment

Chawla Brothers Pvt. Ltd. Vs ACIT (ITAT Mumbai)

The assessee maintained regular books of account following recognized method of accounting. The assessee has shown 10.22% of G.P. for the year under consideration as against 6.78% GP of last year. Search and seizure actions were carried out on 14.6.2006....

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Jaipur Firm surrenders Rs.7.35 crore for taxation

A handicraft, jewellery and carpet export firm here today surrendered an undisclosed income of Rs 7.35 crore for taxation following survey by the Income Tax department, IT sources said....

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Posted Under: Income Tax |

Companies deducts TDS but not pay on time

The survey was carried out to verify whether tax was deducted under the provisions of tax deducted at source (TDS). While examining documents, the department found out that in several cases, companies have defaulted in transferring TDS to the I-T dep...

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Posted Under: Income Tax |

Income Tax Department surveys five companies in Chandigarh

The Income Tax Department, Chandigarh, today carried out surveys on as many as 10 premises belonging to five companies. The entities on which surveys were carried out are Silver Oaks Hospital, Mohali, Atop Fasteners, Meltonics Industries Private Ltd,...

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Posted Under: Income Tax |

Statement taken u/s. 133A during survey cannot have same value as evidence recorded during search u/s 132(4)

We heard the rival contentions. Before proceeding in this matter, we feel it is better to analyse the decision of Honb'le Madras ITAT decision in the case of Sivabala Devi, supra, as both the assessee and Ld. CIT(A) have placed their reliance on it. In that case, the appellant had furnished certain information regarding — her investment...

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Posted Under: Income Tax |

Countrywide Income Tax Survey at the offices of Parsvnath Developers

The Income Tax (I-T) department today searched seven offices of Parsvnath Developers. The department also conducted survey in 22 premises of the company at various locations across the country. "We have done a routine tax enquiry based on some information we had and have seized some documents. There are 100 tax officials involved in this ...

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Posted Under: Income Tax |

IPL: Income Tax Survey at Sahara India office in Lucknow

Income Tax officials on Thursday swooped down on the Sahara India office in Lucknow looking for documents relating to the company’s bid for the IPL Pune team. The Sahara Group is the owner of the IPL Pune team. It paid a whopping Rs 1,700 crore to win the bid....

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Posted Under: Income Tax |

Income Tax department surveyed Ahmedabad-based Astral Poly Technik Ltd

Ahmedabad-based Astral Poly Technik Ltd today said that Income Tax department has carried out survey on the premises of the company on April 15 and 16. Astral said IT department raised two technical issues on allocation of expenses between Gujarat plant and Himachal Pradesh plant of the company....

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Posted Under: Income Tax |

Professionals are under Income Tax scanner after Mumbai-based lawyer disclosed income of 7.50 Crore

Mumbai based lawyers, doctors and film professionals are under Income-Tax department scanner, the department is planning to carry out a series of raids on such professionals, on grounds of incomplete disclosures. According to people familiar with the development, the department got into action after reports that a low-profile Mumbai-base...

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Posted Under: Income Tax |

Income Tax Department raid at Buldhana credit society

Buldhana Urban Co-operative Credit Society, the country's largest, has come under the taxman's scanner for suspected money-laundering. A team of Income Tax officials has conducted a search and seizure operation on around 15 premises that include the society's offices as well as those of its promoter Radheyshyam Chandak and other office-be...

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Posted Under: Income Tax |

Man in Mumbai admits to tax evasion, pays Rs 22cr

This could be one the biggest admission of tax evasion by an individual in recent times. Munir Khan, who describes himself as a`scientist’ and has a medicine for all incurable diseases, on Friday paid Rs 22 crore as tax on his income for the current financial year. According to sources, the assessment wing of the […]...

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Posted Under: Income Tax |

Power of IT Authorities to Conduct Survey in Premises of a CA Lawyer/Tax Practitioner of an Assessee

14018 of 2008 (29/10/2008)

The IT authority does not assume any power to enter the business premises/Office of the CA/Lawyer/Tax Practitioner to conduct survey under section 133A of IT Act in connection with survey of the premises of their client unless the client state in the course of survey that his books of account/documents and records are kept in the office o...

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Posted Under: Income Tax |

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