INCOME TAX
INSTRUCTION NO. 94/1996
Dated: August 13, 1996
Section(s) Referred: 132
Statute: Income - Tax Act, 1961
Reference is invited to para 3 of the Board's circular letter of even number dated 30-1-1969 regarding the above, wherein it has been stated that action under section 132(3) should be taken in the circumstances mentioned in the said circular.
2. In this connection attention is also invited to Board's circular letter F.No. 75/31/67-IT(J)(27), dated 24-7-67 to the effect that search should be carried out in pursuance of an authorisation issued under section 132(1) in order to invoke the provisions of section 132(3).
3. A reading of the former circular conveys the impression the action under section 132(3) could be taken in preference to action under section 132(1). This is not what was intended. The actual intention was that in cases where there has been a seizure by a sister Department and the question of confiscating the seized articles was being considered by the sister Department, action under section 132(3) would be preferable to action under section 132(5). It has to be clarified in this connection that action under section 132(3) or 132(5) can be taken only if action under section 132(1) has been taken.
4. The instructions contained in the circular letter referred to in para 2 above will continue and are to be followed in order to meet the legal requirements. The instructions referred to in para 1 above may, therefore, be treated as clarified as indicated in paragraph above.