35N. Presumption as to books of account, etc., in certain cases
Where during the course of any search made under section 37A, any books of account or other documents, articles or things including money have been found in the possession or control of any person and such books of account or other documents are tendered, or such articles or things including money are relied upon, by the prosecution in evidence against such person or against such person and the person referred to in section 35F for an offence under this Act, the provisions of sub-section (5) of section 37A shall, so far as may be, apply in relation to such books of account or other documents, articles or things including money.
Where—
any books of account or other documents, taken into custody, from the possession or control of any person by any officer or authority under clause (a) or clause (b) of sub-section (1) of section 37B, are delivered to the requisitioning officer under sub-section (2) of that section; or
any note or inventory of any articles or things including money taken into custody, from the possession of any person, by any officer or authority under clause (c) of sub-section (1) of section 37B, is furnished to the requisitioning officer under sub-section (2) of that section, and such books of account or other documents are tendered, or such note or inventory is relied upon, by the prosecution in evidence against such person or against such person and the person referred to in section 35F for an offence under this Act, the provisions of sub-section (5) of section 37A shall, so far as may be, apply in relation to such books of account or other documents or, as the case may be, the articles or things including money, covered by such note or inventory. [35-O. Presumption as to culpable mental state.—(1) In any prosecution for any offence under this Act which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution.
In this sub-section, “culpable mental state” includes intention, motive or knowledge of a fact, or belief in, or reason to believe, a fact.
For the purposes of this section, a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.]] [36. Proof of entries in records or documents.—Entries in the records or other documents in the custody of a wealth-tax authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under this Act, and all such entries may be proved either by the production of the records or other documents in the custody of the wealth-tax authority containing such entries or by the production of a copy of the entries certified by the wealth-tax authority having custody of the records or other documents under its signature and stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.] 1. Ins. by Act 46 of 1986, s. 39 (w.e.f. 10-9-1986). 2. Ins. by Act 3 of 1989, s. 75 (w.e.f. 1-4-1989). Earlier it was omitted by Act 41 of 1975, s. 101 (w.e.f. 1-10-1975). [36A. Power to tender immunity from prosecution.—(1) The Central Government may, if it is of opinion (the reasons for such opinion being recorded in writing) that with a view to obtaining the evidence of any person appearing to have been directly or indirectly concerned in or privy to the concealment of particulars of net wealth or to the evasion of payment of tax on net wealth, it is necessary or expedient so to do, tender to such person immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force and also from the imposition of any penalty under this Act on condition of his making a full and true disclosure of the whole circumstances relating to the concealment of particulars of net wealth or evasion of payment of tax on net wealth.
A tender of immunity made to, and accepted by, the person concerned shall, to the extent to which the immunity extends, render him immune from prosecution for any offence in respect of which the tender was made or from the imposition of any penalty under this Act.
If it appears to the Central Government that any person to whom immunity has been tendered under this section has not complied with the condition on which the tender was made or is wilfully concealing anything or is giving false evidence, the Central Government may record a finding to that effect, and thereupon the immunity shall be deemed to have been withdrawn, and any such person may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which he appears to have been guilty in connection with the same matter and shall also become liable to the imposition of any penalty under this Act to which he would otherwise have been liable.] [37. Power to take evidence on oath, etc.—(1) [The [Assessing Officer], Valuation Officer,] [Deputy Commissioner (Appeals)], [Commissioner (Appeals),] [Chief Commissioner or Commissioner] and the Appellate Tribunal shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit in respect of the following matters, namely:—
discovery and inspection;
enforcing the attendance of any person, including any officer of a banking company and examining him on oath;
compelling the production of books of account and other documents; and
issuing commissions. [(1A) If the Director General or Director or [Joint Director] or [Assistant Director or Deputy Director], or the authorised officer referred to in sub-section (1) of section 37A before he takes action under clauses (i) to (vi) of that sub-section, has reason to suspect that any net wealth has been concealed, or is likely to be concealed, by any person or class of persons within his jurisdiction, then, for the purposes of making any inquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the wealth-tax authorities referred to in that sub-section, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other wealth-tax authority.] * * * * * 1. Ins. by Act 46 of 1964, s. 34 (w.e.f. 1-4-1965). 2. Subs. by s. 35, ibid., for section 37 (w.e.f. 1-4-1965). 3. Subs. by Act 45 of 1972, s. 17, for “The Wealth-Tax Officer,” (w.e.f. 1-1-1973). 4. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988). 5. Subs. by s. 127, ibid., for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988). 6. Ins. by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978). 7. Subs. by Act 4 of 1988, s. 127, for “Commissioner” (w.e.f. 1-4-1988). 8. Ins. by Act 26 of 1988, s. 64 (w.e.f. 1-6-1988). 9. Subs. by Act 21 of 1998, s. 66, for “Deputy Director” (w.e.f. 1-10-1998). 10. Subs. by s. 66, ibid., for “Assistant Director” (w.e.f. 1-10-1998). 11. Sub-section (2) omitted by Act 4 of 1988, s. 153 (w.e.f. 1-4-1989).
Subject to any rules made in this behalf, any authority referred to in sub-section (1) [or sub- section (1A)] may impound and retain in its custody for such period as it thinks fit any books of account or other documents produced before it in any proceeding under this Act:
Provided that [a [Assessing Officer] or a Valuation Officer] [or an [Assistant Director or Deputy Director]] shall not—
impound any books of account or other documents without recording his reasons for so doing, or
retain in his custody any such books or documents for a period exceeding fifteen days (exclusive of holidays) without obtaining the approval of [the Chief Commissioner or Director General or Commissioner or Director therefor, as the case may be].
Any proceeding under this Act before a wealth-tax authority or the Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228, and for the purposes of section 196 of the Indian Penal Code (45 of 1860).] [37A. Power of search and seizure.—(1) Where the [Director General or Director] or the [Chief Commissioner or Commissioner] or any such [Joint Director] or [Joint Commissioner] as may be empowered in this behalf by the Board, in consequence of information in his possession, has reason to believe that—
any person to whom a notice under sub-section (4) of section 16 or a summons under section 37 was issued to produce, or cause to be produced, any books of account or other documents, has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such notice or summons, or
any person to whom a notice or summons as aforesaid has been or might be issued will not, or would not, produce, or cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding under this Act, or
any person is in possession of [any money, bullion, jewellery or other valuable article or thing] disproportionate to his known assets, particulars of which will be useful for, or relevant to, any proceeding under this Act, then,—
the [Director-General or Director] or the [Chief Commissioner or Commissioner], as the case may be, may authorise any [Joint Director], [Joint Commissioner], [Assistant Director or Deputy Director], [ [Assistant Commissioner or Deputy Commissioner] or Income-tax Officer], or 1. Ins. by Act 4 of 1988, s. 153 (w.e.f. 1-4-1989). 2. Subs. by Act 45 of 1972, s. 17, for “a Wealth-Tax Officer” (w.e.f. 1-1-1973). 3. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988). 4. Subs. by Act 21 of 1998, s. 66, for “Assistant Director” (w.e.f. 1-10-1998). 5. Subs. by Act 26 of 1988, s. 64, for “the Chief Commissioner or Commissioner therefor” (w.e.f. 1-4-1988). Earlier the words “Chief Commissioner or Commissioner” were substituted by Act 4 of 1988, s. 127, for “Commissioner” (w.e.f. 1-4-1988). 6. Subs. by Act 41 of 1975, s. 102, for section 37A (w.e.f. 1-10-1975). Earlier section 37A was inserted by Act 46 of 1964, s. 36 (w.e.f. 1-4-1965). 7. Subs. by Act 4 of 1988, s. 127, for “Director of Inspection” (w.e.f. 1-4-1988). 8. Subs. by s. 127, ibid., for “Commissioner” (w.e.f. 1-4-1988). 9. Subs. by Act 21 of 1998, s. 66, for “Deputy Director” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for “Deputy Director of Inspection” (w.e.f. 1-4-1988). 10. Subs. by s. 66, ibid., for “Deputy Commissioner” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for “Inspecting Assistant Commissioner” (w.e.f. 1-4-1988). 11. Subs. by Act 4 of 1988, s. 154, for “any articles or things including money” (w.e.f. 1-4-1988). 12. Subs. by Act 21 of 1998, s. 66, for “Assistant Director” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 154, for “Assistant Director of Inspection” (w.e.f. 1-4-1988). 13. Subs. by Act 4 of 1988, s. 154, for “or Wealth-tax Officer” (w.e.f. 1-4-1988). 14. Subs. by Act 21 of 1998, s. 66, for “Assistant Commissioner” (w.e.f. 1-10-1998).
such [Joint Director] or [Joint Commissioner] may authorise any [ [Assistant Director or Deputy Director]] or [ [Assistant Commissioner or Deputy Commissioner] or Income-tax Officer], (the officer so authorised in all cases being hereafter in this section referred to as the authorised officer) to—
enter and search any building, place, vessel, vehicle or aircraft where he has reason to suspect that such books of account or other documents, [money, bullion, jewellery or other valuable article or thing] are kept;
search any person who has got out of, or is about to get into, or is in, the building, place, vessel, vehicle or aircraft, if the authorised officer has reason to suspect that such person has secreted about his person any such books of account or other documents, [money, bullion, jewellery or other valuable article or thing];
break open the lock of any door, box, locker, safe, almirah or other receptacle for exercising the powers conferred by clause (i) where the keys thereof are not available; [(iv) seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search;]
place marks of identification on any such books of account or other documents or make, or cause to be made, extracts or copies therefrom;
make a note or an inventory of [any money, bullion, jewellery or other valuable article or thing] found which, in his opinion, will be useful for, or relevant to, any proceeding under this Act:
Provided that where any building, place, vessel, vehicle or aircraft referred to in clause (i) is within the area of jurisdiction of any [Chief Commissioner or Commissioner] but such [Chief Commissioner or Commissioner] has no jurisdiction over the person referred to in clause (a) or clause
or clause (c) of this sub-section, then, notwithstanding anything contained in [section 8], it shall be competent for him to exercise the powers under this sub-section in all cases where he has reason to believe that any delay in getting the authorisation from the [Chief Commissioner or Commissioner] having jurisdiction over such person may be prejudicial to the interests of the revenue: [Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such authorised officer and such action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause (iv) of this sub-section.] 1. Subs. by Act 21 of 1998, s. 66, for “Deputy Director” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for “Deputy Director of Inspection” (w.e.f. 1-4-1988). 2. Subs. by s. 66, ibid., for “Deputy Commissioner” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for “Inspecting Assistant Commissioner” (w.e.f. 1-4-1988). 3. Subs. by Act 4 of 1988, s. 154, for “Assistant Director of Inspection” (w.e.f. 1-4-1988). 4. Subs. by Act 21 of 1998, s. 66, for “Assistant Director” (w.e.f. 1-10-1998). 5. Subs. by Act 4 of 1988, s. 154, for “or Wealth-tax Officer” (w.e.f. 1-4-1988). 6. Subs. by Act 21 of 1998, s. 66, for “Assistant Commissioner” (w.e.f. 1-10-1998). 7. Subs. by Act 4 of 1988, s. 154, for “articles or things including money” (w.e.f. 1-4-1989). 8. Subs. by s. 154, ibid., for clause (iv) (w.e.f. 1-4-1989). 9. Subs. by s. 154, ibid., for “any articles or things including money” (w.e.f. 1-4-1989). 10. Subs. by s. 127, ibid., for “Commissioner” (w.e.f. 1-4-1988). 11. Subs. by s. 154, ibid., for “section 10” (w.e.f. 1-4-1988). 12. Ins. by s. 154, ibid. (w.e.f. 1-4-1989).
Where any [Chief Commissioner or Commissioner], in consequence of information in his possession, has reason to suspect that any books of account or other documents, [money, bullion, jewellery or other valuable article or thing] in respect of which an officer has been authorised by the [Director General or Director] or any other [Chief Commissioner or Commissioner] or any such [Joint Director] or [Joint Commissioner] as may be empowered in this behalf by the Board to take action under clauses (i) to (vi) of sub-section (1) are kept in any building, place, vessel, vehicle or aircraft not mentioned in the authorisation under sub-section (1), such [Chief Commissioner or Commissioner] may, notwithstanding anything contained in [section 8], authorise the said officer to take action under any of the clauses aforesaid in respect of such building, place, vessel, vehicle or aircraft.
The authorised officer may requisition the services of any police officer or of any officer of the Central Government, or of both, to assist him for all or any of the purposes specified in sub-section (1) or sub-section (2) and it shall be the duty of every such officer to comply with such requisition. [(3A) The authorised officer may, where it is not practicable to seize any books of account, other documents, money, bullion, jewellery or other valuable article or thing, for reasons other than those mentioned in the second proviso to sub-section (1), serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section.
For the removal of doubts, it is hereby declared that serving of an order as aforesaid under this sub-section shall not be deemed to be seizure of such books of account, other documents, money, bullion, jewellery or other valuable article or thing under clause (iv) of sub-section (1).]
The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books of account or other documents, articles or things including money and any statement made by such person during such examination may thereafter be used in evidence in any proceeding under this Act. [Explanation.—For the removal of doubts, it is hereby declared that the examination of any person under this sub-section may be not merely in respect of any books of account, other documents or assets found as a result of the search, but also in respect of matters relevant for the purposes of any investigation connected with any proceedings under this Act.]
Where any books of account or other documents, articles or things including money are found in the possession or control of any person in the course of a search, it may be presumed that—
such books of account or other documents, articles or things including money belong to such person;
the contents of such books of account or other documents are true; and
the signature and every other part of such books of account or other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person’s handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested. 1. Subs. by Act 4 of 1988, s. 127, for “Commissioner” (w.e.f. 1-4-1988). 2. Subs. by s. 154, ibid., for “articles or things including money” (w.e.f. 1-4-1989). 3. Subs. by s. 127, ibid., for “Director of Inspection” (w.e.f. 1-4-1988). 4. Subs. by Act 21 of 1998, s. 66, for “Deputy Director” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for “Deputy Director of Inspection” (w.e.f. 1-4-1988). 5. Subs. by s. 66, ibid., for “Deputy Commissioner” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for “Inspecting Assistant Commissioner” (w.e.f. 1-4-1988). 6. Subs. by Act 4 of 1988, s. 154, for “section 10” (w.e.f. 1-4-1988). 7. Ins. by s. 154, ibid. (w.e.f. 1-4-1989). [(5A) Where any money, bullion, jewellery or other valuable article or thing (hereafter in this section and in sections 37B and 37C referred to as the assets) is seized under sub-section (1) or sub-section (2), the Assessing Officer, after affording a reasonable opportunity to the person concerned of being heard and making such inquiry as may be prescribed, shall, within one hundred and twenty days of the seizure, make an order, with the previous approval of the [Joint Commissioner],—
estimating the undisclosed net wealth in a summary manner to the best of his judgment on the basis of such materials as are available with him;
calculating the amount of tax on the net wealth so estimated in accordance with the provisions of this Act;
determining the amount of interest payable and the amount of any penalty imposable in accordance with the provisions of this Act, as if the order had been the order of regular assessment;
specifying the amount that will be required to satisfy any existing liability under this Act in respect of which such person is in default or is deemed to be in default, and retain in his custody such assets or part thereof as are in his opinion sufficient to satisfy the aggregate of the amounts referred it in clauses (ii), (iii) and (iv) and forthwith release the remaining portion, if any, of the assets to the person from whose custody they were seized:
Provided that where a person has paid or made satisfactory arrangements for payment of all the amounts referred to in clauses (ii), (iii) and (iv) or any part thereof, the Assessing Officer, may with the previous approval of the Chief Commissioner or Commissioner release the assets or such part thereof as he may deem fit in the circumstances of the case.
The assets retained under sub-section (5A) may be dealt with in accordance with the provisions of section 37C.
If the Assessing Officer is satisfied that the seized assets or any part thereof were held by such person for or on behalf of any other person, the Assessing Officer may proceed under sub-section (5A) against such other person and all the provisions of this section shall apply accordingly.]
The books of account or other documents, seized under sub-section (1) or sub-section (2), shall not be retained by the authorised officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same are recorded by him in writing and the approval of the [Chief Commissioner or Commissioner] for such retention is obtained: 1. Ins. by Act 4 of 1988, s. 154 (w.e.f. 1-4-1989). 2. Subs. by Act 21 of 1998, s. 66, for “Deputy Commissioner” (w.e.f. 1-10-1998). 3. Subs. by Act 4 of 1988, s. 127, for “Commissioner” (w.e.f. 1-4-1988). 4. Subs. by Act 49 of 1991, s. 82, for “Chief Commissioner or Commissioner” (w.e.f. 1-10-1991).
Provided that the [Chief Commissioner or Commissioner] shall not authorise the retention of the books of account or other documents for a period exceeding thirty days after all the proceedings under this Act in respect of the years for which the books of account or other documents are relevant are completed. [(6A) An order under sub-section (3A) shall not be in force for a period exceeding sixty days from the date of the order, except where the authorised officer, for reasons to be recorded in writing by him, extends the period of operation of the order beyond sixty days, after obtaining the approval of the [Director or, as the case may be, Commissioner] for such extension:
Provided that the [Director or, as the case may be, Commissioner] shall not approve the extension of the period for any period beyond the expiry of thirty days after the completion of the proceedings under this Act in respect of the years for which the books of account, other documents, money, bullion, jewellery or other valuable articles or things are relevant.]
The person from whose custody any books of account or other documents are seized under sub-section (1) or sub-section (2) may make copies thereof, or take extracts therefrom, in the presence of the authorised officer or any other person empowered by him in this behalf at such place and time as the authorised officer may appoint in this behalf.
Where the authorised officer has no jurisdiction over the person referred to in clause (a) or clause
or clause (c) of sub-section (1), the books of account or other documents seized under that sub-section shall be handed over by the authorised officer to the [Assessing Officer] having jurisdiction over such person within a period of fifteen days of such seizure and thereupon the powers exercisable by the authorised officer under sub-section (6) or sub-section (7) shall be exercisable by such [Assessing Officer].
If a person legally entitled to the books of account or other documents seized under sub-section
or sub-section (2) objects for any reason to the approval given by the [Chief Commissioner or Commissioner] under sub-section (6), he may make an application to the Board stating therein the reasons for such objection and requesting for the return of the books of account or other documents. [(9A) If any person objects for any reason to an order made under sub-section (5A), he may, within thirty days from the date of such order, make an application to the Chief Commissioner or Commissioner stating therein the reasons for such objection and requesting for appropriate relief in the matter.] [(10) On receipt of the application under sub-section (9), the Board, or on receipt of the application under sub-section (9A), the Chief Commissioner or Commissioner, may, after giving the applicant an opportunity of being heard, pass such orders as it or he thinks fit.]
The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches shall apply, so far as may be, to searches under this section.
The Board may make rules in relation to searches or seizure under this section; and in particular and without prejudice to the generality of the foregoing power, such rules may provide for the procedure to be followed by the authorised officer—
for obtaining ingress into any building, place, vessel, vehicle or aircraft to be searched where free ingress thereto is not available;
for ensuring the safe custody of any books of account or other documents seized. [Explanation 1.—In computing the period referred to in sub-section (5A) for the purposes of that sub-section, any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.
In this section, the word “proceeding” means any proceeding in respect of any year under this Act which may be pending on the date on which a search is authorised under this section or which may have been completed on or before such date and includes also proceedings under this Act which may be commenced after such date in respect of any year.]