search servey and seizure

Director, Deputy Director, Assessing Officer, Tax recovery Officer or the Inspector ofIncome-tax needs to take the approval of the Director or Joint Commissioner as the casemay be.In order to avoid such embarrassments, the CBDT vide instruction dated 10 th March2003, has instructed the subordinate officers to focus and concentrate on collectingevidence of income which is not disclosed or is not likely to be disclosed rather thanrecord an unsubstantiated statement. The instruction is reproduced hereunder:-Instruction dated 10 th March, 2003 vide No. F No. 286/2/2003/IT (Inv):“ToAll Chief Commissioner of Income Tax (Cadre Contra)&All Directors General of Income Tax Inc.Subject: Confession of additional Income during the course of search &seizure and survey operation regarding.Instances have come to the notice of the Board where assessee haveclaimed what they have been forced to confess the undisclosed incomeduring the course of the search & seizure and survey operations. Suchconfessions, if not based upon credible evidence, are later retracted by theconcerned assessees while filing returns of income. In there circumstances,on confessions during the course of search & seizure and survey operationsdo not serve any useful purpose. It is, therefore, advised that there should befocus and concentration on collection of evidence of income which leads toinformation on what has not been disclosed or is not likely to be disclosedbefore the Income Tax Department. Similarly, while recording statementduring the course of search & seizure survey operations no attempt should bemade to obtain confession as to the undisclosed income. Any action on thecontrary shall be viewed adversely.Further, in respect of pending assessment proceedings also, assessingofficers should rely upon the evidence/materials gathered during the courseof search/seizure operations or thereafter while framing the relevantassessment orders.Yours Faithfully,Sd/-(S. R. Mahapatra)Under Secretary (Inv. II)15. Copies of statements recorded during survey.It is settled law that copy of only that material which is being used against the assesseeis to be provided. Accordingly even though the statement of the assessee is recordedduring the course of survey, no copy is provided to him and it is for the assessee to thenapply to this concerned officer for the same who would provide the copy in case heintends to use it against the assessee.