Direct Tax Laws and International Taxation · Survey, Search and Seizure

Search and Seizure under Section 247 of the Income-tax Act, 2025

Updated 11 October 2026 · Fact-checked

Section 247 lets a competent authority authorise an officer to search premises and seize books, documents, computer systems and assets when there is reason to believe that summons or notices were ignored or that undisclosed income or property exists. The officer may enter, break open locks, search persons, seize and examine on oath.

Understand Search and Seizure under Section 247

A search is the strongest information-gathering tool of the tax department. It is used when ordinary notices are not enough. So the Act ties it to strict conditions and a written authorisation.

The starting point is reason to believe, formed by the competent authority in consequence of information in its possession. Section 247(1) gives two triggers. Under (a), a person who got a summons under section 246(1) or a notice under section 268(1) (or the equivalent under the 1961 Act) has failed to produce books, documents or electronic information, or has been issued, or might be issued, such a summons or notice and would not produce them. Under (b), a person holds an asset, or information about an asset, that represents wholly or partly income or property which has not been or would not be disclosed. The Act calls this undisclosed income or property.

Once a trigger exists, the approving authority may authorise a Joint Director, Joint Commissioner, Assistant Director, Assistant Commissioner or Income-tax Officer. A Joint Director or Joint Commissioner so authorised may in turn authorise an Assistant Director, Assistant Commissioner or Income-tax Officer. The officer who holds the authorisation is the authorised officer.

The authorised officer has seven powers in clauses (i) to (vii): enter and search, require technical assistance and access codes, break open locks or override access codes, search persons, mark and copy documents, make an inventory, and seize. Stock-in-trade of a business can be noted in an inventory but cannot be seized. Where seizure is not practicable, a prohibitory order can be served instead.

The rest of the section supports the search: police help, examination on oath, presumptions, provisional attachment and valuation. Section 301 then fixes the block period for assessing undisclosed income found in the search.

Key rules to remember

Trigger under section 247(1)(a): Summons/notice issued + books, documents or electronic information not produced (or would not be produced); The summons or notice is under section 246(1) or 268(1) of the 2025 Act, or the corresponding provisions of the 1961 Act.
Trigger under section 247(1)(b): Person holds asset or information about asset + asset represents undisclosed income or property; Covers income or property not disclosed, or that would not be disclosed, under the 1961 Act, the Black Money Act 2015 or this Act.
Chain of authorisation: Approving authority → JD/JC/AD/AC/ITO → (if JD or JC) → AD/AC/ITO; The officer finally holding the authorisation is the authorised officer.
Powers in clauses (i) to (vii): Enter and search; require assistance and access code; break open locks or override access code; search persons; mark and copy; inventory; seize; Stock-in-trade of the business can be inventoried but not seized.
Prohibitory order, section 247(4)(b): Order not to remove or deal with the item; maximum 60 days from the date of the order; It is not deemed seizure. Under (4)(a), for bulky or dangerous valuables (other than stock-in-trade), the order is deemed seizure.
Provisional attachment, section 247(8): During the search or seizure, or within 60 days from the last authorisation executed; valid 6 months from end of the month of the order; Needs written reasons and prior approval of the Principal DG/DG/Principal Director/Director.
Valuation reference, section 247(9): Reference during search/seizure or within 60 days of the last authorisation; report due within 60 days of receipt; Estimates fair market value of the property.
Block period, section 301(a): Six tax years before the tax year of search + 1 April of the search year to the date the last authorisation is executed; For a search, the last authorisation is executed on conclusion of search as recorded in the last panchnama.

How to solve Search and Seizure under Section 247 questions

Use this order for any case question on search and seizure. It follows the structure of the section, so you pick up marks at each stage.

1Identify the trigger. Is it failure to produce books after a summons or notice (clause (a)), or possession of assets representing undisclosed income (clause (b))?
2Check the basis. The competent authority must have reason to believe, in consequence of information in its possession. A mere hunch is not enough.
3Check who authorised whom. The approving authority authorises the listed officers, and a JD or JC can sub-authorise an AD, AC or ITO.
4Match each action in the facts to a power in clauses (i) to (vii) and to the supporting sub-sections: police help, oath, ancillary orders.
5Apply the limits. Stock-in-trade is not seized. A prohibitory order lasts at most 60 days. Provisional attachment needs reasons and prior approval.
6State the presumptions and evidentiary value of statements recorded on oath.
7Fix the block period if the question asks about assessment, and conclude with a clear answer.

Quickest way: Trigger, Authority, Power, Limit

When to use it: Use this for MCQs and for short case-based answers where you must say whether an action is valid.

Trigger: summons or notice ignored, or undisclosed assets?
Authority: written authorisation from the approving authority chain?
Power: which clause of 247(1)(i) to (vii), or which sub-section?
Limit: stock-in-trade, 60 days, 6 months, prior approval?
Write the conclusion in one line, naming the section.

Common mistakes in Search and Seizure under Section 247

Saying stock-in-trade can be seized.
Students remember that assets can be seized and stop reading.
Fix: Clause (vii) excludes stock-in-trade. It can only be noted in an inventory under clause (vi).
Treating a prohibitory order as seizure in every case.
Both stop the person from dealing with the item.
Fix: Under 247(4)(a), the order for bulky or dangerous valuables is deemed seizure. Under (4)(b), it is not deemed seizure and lasts at most 60 days.
Thinking only failure to produce books justifies a search.
Students learn clause (a) and skip clause (b).
Fix: Learn both triggers. Clause (b) applies where an asset represents undisclosed income or property.
Mixing up the 60-day and 6-month periods.
Several time limits sit close together in the section.
Fix: Tie each to its power: 60 days for a prohibitory order and for the attachment and valuation reference window; 6 months for validity of provisional attachment.
Saying the statement on oath is useful only for the seized items.
Students assume examination is limited to what was found.
Fix: Under 247(6)(b) the examination can cover all matters relevant to any investigation connected with a proceeding. The statement may be used in evidence.
Treating the presumptions as conclusive.
The word 'presumed' is read as 'proved'.
Fix: Section 247(7) says it 'may be presumed'. It is a presumption, not a certainty.

Worked examples

Example 1

The Joint Commissioner has information that Rohan Traders, Pune, was summoned under section 246(1) to produce its books but did not. During a search authorised by the approving authority, the authorised officer finds ₹18,00,000 cash in a locked almirah whose key is missing, and stock of goods worth ₹40,00,000. Advise on what the officer can do.

Show the solution

Trigger: books were summoned and not produced, so section 247(1)(a)(I) applies. The cash may also fall under clause (b) if it represents undisclosed income.
Entry and search: clause (i) allows entering and searching places where books or assets are suspected to be kept.
Missing key: clause (iii) allows breaking open the lock of the almirah where the key is not available.
Cash: it is an asset, so clause (vii) allows seizure after an inventory under clause (vi).
Stock: ₹40,00,000 of goods is stock-in-trade. It can be noted in an inventory but cannot be seized.

Answer: The officer may enter and search, break open the almirah, inventory and seize the ₹18,00,000 cash (if an asset under the section), and only record the stock worth ₹40,00,000 in the inventory.

Example 2

A search of Meera Exports begins on 10 February 2027 (tax year 2026-27) and the last panchnama is closed on 14 February 2027. State the block period, and state how long an order under section 247(4)(b) served on a bank locker on 11 February 2027 can last.

Show the solution

Block period part (i): six tax years preceding the tax year of search. The search tax year is 2026-27, so the six years are 2020-21 to 2025-26.
Block period part (ii): from 1 April 2026 to the date of execution of the last authorisation. This is the conclusion of search in the last panchnama, 14 February 2027.
Combine: block period is 2020-21 to 2025-26 plus 1 April 2026 to 14 February 2027.
Locker order: where seizure is not practicable, section 247(4)(b) allows a prohibitory order. It cannot exceed sixty days from the date of the order.
Sixty days from 11 February 2027 gives the outer limit as 12 April 2027 if counted from that date, with the day of the order as day 0. The safe statement is: not beyond sixty days from 11 February 2027.
This order is not deemed seizure of the locker.

Answer: The block period covers tax years 2020-21 to 2025-26 plus 1 April 2026 to 14 February 2027. The locker order can remain in force for no more than sixty days from 11 February 2027 and is not deemed seizure.

Exam tips

Quote section 247 with the clause number, such as 247(1)(vii) or 247(4)(b). Examiners reward precision.
In case questions, list facts against the powers one by one. A table-like list of bullets gains marks quickly.
Learn the numbers: 60 days (prohibitory order, attachment window, valuation report) and 6 months (attachment validity).
Always separate seizure of assets from stock-in-trade, and the deemed seizure order from the non-seizure order.
For assessment links, state the block period under section 301 and the meaning of undisclosed income.

Practice questions from Survey, Search and Seizure

Search and Seizure under Section 247 in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Search and Seizure under Section 247: frequently asked questions

What is section 247 of the Income-tax Act, 2025?

It is the search and seizure provision. It lets an authorised officer enter and search premises, break open locks, search persons, and seize books, documents, computer systems and assets when the trigger conditions are met.

When can a search be authorised?

When the competent authority, in consequence of information in its possession, has reason to believe that a summons or notice to produce books was not complied with, or that a person holds assets representing undisclosed income or property.

Can the officer seize stock-in-trade?

No. The officer can note it in an inventory under clause (vi), but the seizure power in clause (vii) excludes stock-in-trade of the business.

Can a statement recorded during a search be used later?

Yes. Under section 247(6), the officer may examine a person on oath, and the statement may be used in evidence in any proceeding under the 1961 Act or the 2025 Act.

What is the block period for a search?

Under section 301(a) it is the six tax years before the search year, plus the period from 1 April of the search year to the date the last authorisation is executed.