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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, the authorised officer finds that a heavy machine kept in a godown cannot practicably be moved to a safe place because of its weight. Which action does the Act permit for this valuable article, which is not stock-in-trade?

The officer may serve an order on the owner or person in control not to remove, part with or deal with the article. Where removal is impracticable due to weight or volume, this order is deemed to be seizure under section 247, with no sixty-day limit.

  1. AServe an order on the owner or person in immediate possession not to remove, part with or deal with it, and this is deemed to be seizureCorrect
  2. BServe a restraint order that lapses automatically after sixty days and is not treated as seizure
  3. CSeize the article only after obtaining an additional approval from the Board
  4. DTake no action, because only books of account and documents may be restrained

Explanation

Section 247(4)(a) lets the authorised officer serve a prohibitory order on the owner or person in control of a valuable article, other than stock-in-trade, where physical possession and removal is impracticable due to volume, weight or nature. Such an order is deemed to be seizure under sub-section (1)(vii). The sixty-day, non-seizure order in clause (b) applies to cases other than those in clause (a), so option 1 is wrong.

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