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.