Section 246: power regarding discovery, production of evidence, etc

Civil-court powers

The Assessing Officer, Joint Commissioner, Joint Commissioner (Appeals), Commissioner (Appeals), Commissioner or Principal Commissioner, Chief Commissioner or Principal Chief Commissioner, and the Dispute Resolution Panel referred to in Section 275(17)(a), have the same powers as a court under the Code of Civil Procedure, 1908 when trying a suit, in respect of: discovery and inspection; enforcing attendance of any person (including a banking company officer) and examining them on oath; compelling production of books of account and other documents; and issuing commissions.

Exercise of these powers without pending proceedings

These powers may also be exercised - even where no proceeding is pending before that or any other income-tax authority - by:

• Any income-tax authority not below the rank of Assistant Commissioner, notified by the Board, for inquiry or investigation into an agreement referred to in Section 159
• The Principal Director General/Director General, Principal Director/Director, or Joint/Assistant Director, for inquiry or investigation into suspected concealment of income within their jurisdiction
• The authorised officer referred to in Section 247(1), before or during action under Section 247(1)(i) to (vii), where there is reason to suspect concealment of income

Impounding documents

An income-tax authority exercising these powers may, subject to prescribed rules, impound and retain in custody any books of account or other documents produced before it in a proceeding under the Act, for such period as it thinks fit.

The Assessing Officer or Assistant Director must record reasons for impounding books of account or documents, and may retain them for up to fifteen days (excluding holidays), or longer with the prior sanction of the approving authority.

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