Section 261
Section 261: interpretation
Section 261 is the definitions section for Part A of Chapter XIV - the search, seizure, requisition and survey provisions in Sections 247 to 260. It pins down exactly who counts as an "approving authority," "authorised officer" or "competent authority," and what "asset," "computer system" and "virtual digital space" mean in this context.
Key role definitions
"Approving authority" means the Principal Director General/Director General, Principal Chief Commissioner/Chief Commissioner, Principal Director/Director, or Principal Commissioner/Commissioner.
"Authorised officer" means the Joint Director/Additional Director, Joint Commissioner/Additional Commissioner, Assistant Director/Deputy Director, Assistant Commissioner/Deputy Commissioner, or Income-tax Officer/Tax Recovery Officer.
"Competent authority" means the Principal Director General/Director General, Principal Chief Commissioner/Chief Commissioner, Principal Director/Director, Principal Commissioner/Commissioner, Joint Director/Additional Director, or Joint Commissioner/Additional Commissioner.
Assets and electronic material
"Asset" includes any money, bullion, jewellery, virtual digital asset or other valuable article or thing, held in physical or virtual form.
"Computer system" means computers, computer networks, computer resources, communication devices, and digital/electronic data storage devices, whether stand-alone or networked, including remote or cloud servers and virtual digital space.
"Electronic form" and "electronic record" carry the meanings given in Sections 2(1)(r) and 2(1)(t) of the Information Technology Act, 2000, respectively.
"Material seized or requisitioned" means books of account, other documents, or computer systems and extracts seized during a search under Section 247 or requisitioned under Section 248, including backups from software like Tally, spreadsheets and word files, and all electronic records - and is construed as books of account maintained by the person concerned.
"Virtual digital space" means an environment constructed through computer technology (not the physical world), including email servers, social media accounts, online investment/trading/banking accounts, websites recording asset ownership, remote/cloud servers, digital application platforms, and similar spaces.
Date of last authorisation
"Date on which the last of the authorisations for search was executed" means, for a search, the date of conclusion of search as recorded in the last panchnama for the person concerned; for a requisition under Section 248, it means the date the requisitioning officer actually receives the books, documents, computer system or assets.
Frequently asked questions
Does 'asset' under this Part include cryptocurrency?
Yes - Section 261(b) defines "asset" to include a virtual digital asset, held in physical or virtual form, along with money, bullion, jewellery, and other valuable articles or things.
What counts as the 'date of the last authorisation' for computing time limits after a search?
For a search, it is the date of conclusion of search as recorded in the last panchnama drawn for the person concerned. For a requisition under Section 248, it is the date the requisitioning officer actually receives the requisitioned material.
Related sections
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