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

Under section 247 of the Income-tax Act, 2025, an authorised officer finds a large machine that cannot practicably be moved to a safe place because of its weight. Which action is available to the officer in respect of that machine, which is not stock-in-trade?

The officer may serve an order on the person in immediate possession, forbidding removal or dealing with the machine without permission. Because physical removal is impracticable due to weight, this order is deemed to be seizure of the article, unlike a clause (b) order, which is not seizure.

  1. AServe an order on the person in immediate possession not to remove, part with or deal with it, and this is deemed to be seizureCorrect
  2. BServe a prohibitory order that lapses after sixty days and is not deemed to be seizure
  3. CSeize it only after obtaining a fresh authorisation from the Valuation Officer
  4. DPlace marks of identification only, with no restriction on its disposal

Explanation

Section 247(4)(a) allows a restraint order where physical possession is impracticable because of volume, weight or physical characteristics or dangerous nature. Such an order is deemed to be seizure under sub-section (1)(vii). The sixty-day, non-seizure order in option B applies to impracticability for other reasons under clause (b).

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