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

During a search under section 247 of the Income-tax Act, 2025, books of account are found in the possession of Mr. Rajan. Which presumption may the authorised officer draw under the section?

It may be presumed that the books belong to Mr. Rajan and that their contents are true. Section 247(7) allows these presumptions, along with those about handwriting, signatures and execution, for items found in a person's possession or control during a search.

  1. AThat the books belong to Mr. Rajan and that their contents are trueCorrect
  2. BThat the books are false and were prepared after the search began
  3. CThat the books belong to Mr. Rajan but their contents must be independently proved
  4. DThat the books belong to the company's auditor

Explanation

Section 247(7) provides that where a person is found in possession or control of books of account or documents in a search, it may be presumed that they belong to that person and that their contents are true, along with presumptions on handwriting and execution. The option requiring independent proof of contents contradicts the presumption of truth.

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