Section 132 and 132A - Rationalisation of the provisions in respect of time limits for completion of search assessment


The amendment seeks to ensure confidentiality of the reasons recorded by the authorities for resorting to the provisions of search and seizure. The law requires the ‘reason to believe’ or ‘reason to suspect’ to be recorded before any search can be undertaken. The certain judicial pronouncements have held that such reasons should be disclosed to the person or the authority, if so demanded. The amendment declares that the ‘reason to believe’ or ‘reason to suspect’ shall not be disclosed to any person or any authority or even to Appellate Tribunal.


Another amendment is proposed enabling the authorized officers to provisionally attach any property belonging to the assessee if he is satisfied that for the purpose of protecting the interest of revenue it is necessary to do so. Before doing so he will have to take the previous approval of the Principal Director General or Director General or the Principal Director or Director and such attachments shall cease to have effect after the expiry of 6 months from the date of the order.

The amendments will be effective retrospectively from 01.04.1962 in case of search under section 132 and from 01.10.1975 in case of action under section 132(1A) and 132A.