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

During a search at the premises of Mehta Traders, a bank account and a laptop cannot practicably be seized, and the authorised officer serves an order on the person in control not to deal with them without permission. Which statement is correct under section 247 of the Income-tax Act, 2025 for such an order made for reasons other than those in the clause on bulky or dangerous articles?

Such a restraint order is not deemed to be seizure, and it cannot stay in force for more than sixty days from the date of the order. The six-month validity applies only to provisional attachment of property, not to this order.

  1. AThe order is deemed to be seizure and remains in force until assessment is complete
  2. BThe order is not deemed to be seizure and cannot remain in force beyond sixty days from its dateCorrect
  3. CThe order is deemed to be seizure but lapses after sixty days
  4. DThe order is not deemed to be seizure but remains valid for six months from the end of the month

Explanation

Section 247(4)(b) covers books, documents, assets, bank lockers, bank accounts or computer systems where seizure is not practicable for other reasons. The order cannot remain in force beyond sixty days from the date of the order, and serving it is not deemed to be seizure. The six-month period belongs to provisional attachment under sub-section (8), which is why option 4 is wrong.

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