Copying, extraction, retention and release of books of account and documents seized or requisitioned.
251(1)
Where, the authorised officer, referred to in section 247(1)(b) has no jurisdiction over the person from whom the assets or books of account or other documents or electronic media or computer system were seized or requisitioned under section 247(1) or 248, he shall hand over the seized or requisitioned assets or books of account or other documents or electronic media or computer system to the Assessing Officer having jurisdiction over such person and such Assessing Officer thereupon shall exercise the powers under sub-sections (2) to (4).
251(2)
The authorised officer or the Assessing Officer referred in sub-section (1), shall, on an application made by the person referred to therein, allow him to make copies or take extracts from, the material seized or requisitioned, at such place and time as appointed, and in the presence of a person empowered by such officer in this behalf.
251(3)
The authorised officer may––
- (a) retain the material seized or requisitioned, under section 247 or 248, up to one month from the end of the quarter in which the order of assessment or reassessment or recomputation is made;
- (b) retain such material seized or requisitioned, beyond the period specified in clause (a), after recording reasons in writing and obtaining approval from the approving authority.
251(4)
The approving authority shall not allow the retention of material seized or requisitioned, beyond thirty days from the date on which all proceedings under this Act in respect of the years for which the material seized or requisitioned are relevant, are completed.
251(5)
If a person legally entitled to the material seized or requisitioned under section 247(1) or section 248, objects for any reason, to the approval given by approving authority under sub-section (3)(b), he may make an application to the Board stating therein the reasons for such objection and requesting for the return of the material seized or requisitioned and the Board may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit.
Section Summary:
This section outlines the procedures for handling books of account, documents, electronic media, or computer systems seized or requisitioned during tax investigations. It specifies how these materials should be transferred, copied, retained, and released, ensuring proper jurisdiction and compliance with legal processes.
Key Changes:
- Jurisdiction Transfer: If the authorized officer who seized the materials does not have jurisdiction over the taxpayer, the materials must be handed over to the Assessing Officer who does.
- Retention Period: The seized materials can be retained for up to one month after the end of the quarter in which the assessment or reassessment order is made. Retention beyond this period requires written reasons and approval from the approving authority.
- Objection Mechanism: Taxpayers can object to the retention of seized materials beyond the allowed period by applying to the Board, which will hear the case and decide on the return of the materials.
Practical Implications:
- For Taxpayers: Taxpayers can request copies or extracts of seized materials, ensuring transparency and access to their own records during investigations.
- For Authorities: The section ensures that seized materials are handled by the appropriate jurisdictional officer and sets clear limits on how long materials can be retained.
- For Compliance: Taxpayers must be aware of their rights to object to prolonged retention of their materials and the process for doing so.
Critical Concepts:
- Authorized Officer: The tax official who conducts the seizure or requisition of materials.
- Assessing Officer: The tax officer with jurisdiction over the taxpayer, responsible for assessments and reassessments.
- Approving Authority: A higher authority that approves the retention of seized materials beyond the standard period.
- Retention Period: The maximum time seized materials can be held, which is one month after the end of the quarter in which the assessment order is made, unless extended with approval.
Compliance Steps:
- Transfer of Materials: If the authorized officer lacks jurisdiction, they must transfer seized materials to the appropriate Assessing Officer.
- Copying/Extraction Requests: Taxpayers can apply to the authorized or Assessing Officer to make copies or extracts of seized materials.
- Retention Approval: Authorities must record reasons and obtain approval to retain materials beyond the standard period.
- Objection Process: Taxpayers can object to prolonged retention by applying to the Board, providing reasons for their objection.
Examples:
- Jurisdiction Transfer: An authorized officer in Delhi seizes documents from a taxpayer based in Mumbai. Since the officer lacks jurisdiction, the documents are transferred to the Mumbai Assessing Officer.
- Copying Request: A taxpayer requests copies of seized financial records to prepare their defense during an audit. The Assessing Officer allows this in the presence of an authorized person.
- Retention Extension: The Assessing Officer needs to retain seized materials for an additional two months to complete an investigation. They record reasons and obtain approval from the approving authority.
- Objection to Retention: A taxpayer objects to the extended retention of their computer system, arguing it disrupts their business. They apply to the Board, which reviews the case and orders the return of the system.
This section ensures a balance between the authorities' need to investigate and the taxpayer's rights to access and reclaim their materials.