- What is Power of Survey in Income Tax Act
- Can Income Tax authority enter the office of CA or Consultant to assesee under Survey
Income Tax survey can be conducted at place where the business of the assesee is being conducted including the place where the books of accounts of assesee or cash or article relating to business or stock of business or any document relating to business are kept.
As per the above lines the income tax authority does not have the power to enter into residential premises of the assesee but if the assesee states or the authority finds during survey that any cash, stock, books of account or any document relating to business are kept by assesee at his residential house then the authority can enter residential house of the assesee .
As per the Circular no.7D 03-05-1967 issued by Department in this regard-
The provisions of section 133A make it clear that, in either case, the place must be one where the business or profession of an assesse is carried on, although it is not necessary that it should be the principal place of business or profession. The place where entry can be made under the section, must not be a place where the assessee does not carry on business. Business or residential premises of third parties, including a Chartered Accountant, a Pleader or Income-tax Practitioner, of whom the assessee may be client/are not places which could be entered into for the purpose of section 133A. It would be improper for an Income-tax Officer or an Inspector, authorised by him in this behalf, to enter the office of a Chartered Accountant for the purpose of inspecting the books of his client.
It may, however be noted that the above restrictions do not apply to cases of search and seizure specifically authorised under section 132 by the Commissioner of Income-tax/Director of Inspection, which will be governed by the provisions of that section.
· Can the authority while doing survey break the lock of business premises which are locked
There is no provision in Section 133A enabling the surveying authority to break open any door or lock or windows to obtain ingress. Entry can be made only if the premises are open and that too during the normal business hours of the assessee.
· Can authority enter anytime in the business premises for the purpose of survey
No, the survey can commence only when the business place is open for the conduct of the business. In case of any other place, the income tax authority can enter only after sunrise and before the sunset. Once the survey commences then there is no time limit as to when it should conclude. The restrictions are on the time of the entry in the business premises and not as to the exit from such place.