The power to survey is an important tool in the hands of the tax administrators and extremely useful in helping them nab potential tax evaders. Shop owners must handle the survey within the purview of law without getting unduly scared, and carry on their business profitably and effectively.

Power of survey: Section 133A

Under Section 133A, an I-T official is vested with the power of entry into any place within the limits of his territorial jurisdiction or any premises occupied by a person within his specified jurisdiction, with the rider that a business or profession is carried on at the place. The power of entry includes the power to inspect the records kept, including books of accounts.

Later, this power was extended to check or verify cash, stock or other valuable articles or to get furtherinformation. These extensive powers enable the Assessing Officer or any other authority to check and/or verify the cash, stock, etc, and thus find out if the taxpayer has been declaring his income correctly and whether the books of accounts produced by him at the time of assessment reflect the correct status of his business turnover or receipts or income or even whether parallel sets of books of accounts are being maintained by him.

The power to survey is an effective deterrent to the tendency to hide the real state of affairs from the I-T authorities. However, use of these powers are often restricted by administrative bottlenecks and difficulties, staff problems and, at times, by the resistance offered by the persons present at the premises being surveyed.

When and where a survey can be conducted is vital. It has been decided in judicial pronouncements that a survey can be carried out only during business hours at the place or places of business or profession or places connected with such business orprofession and only after sunrise and before sunset. However once the survey has been started, it may continue till completed.

Information that can be collected during a survey

The I-T officials can enter any business or professional premises within his jurisdiction to enable him to collect certain information required by him for the purposes of the Act. The information to be furnished under Section 133B (1) has to be in Form No. 45D as per rule 112E. The main intention behind the insertion of this Section 133B is to get correct information for the purpose of proper assessment of tax.

The information is required to be furnished in duplicate by any adult occupant of such building or premises--such an occupant includes owner, employee or any other person helping the proprietor in the conduct of the business or profession.

The power of survey or of getting information is very vital to the efficient functioning of direct tax administration.

The following judgements and the conditions laid down bythem may prove to be valuable reference material: