 bm n j 1 ~i's the incojde-t~ (amendment) bill, 1965 a bu,t/urthet" to czmend the incom!-t:u act, 1961 and to thlhddte cenai" aearcms under that act be it enacted by parliament in the sixteenth year of the republic of india as follows:-1 this act may be called "the income-tax (amendment) act, short 1985 title a ot 1181 % foreetion 132" of the income-tax act, 1161 (hs'einafter referred subm- f , to u the principal act), the following sections ihall be lu1mtituted, :~ 0 namely: -mctiodi for tee-_ " "" tion iss '132 (1) where the direetor of inspec:tion or the commis- search, iiioner, in consequence of information in his possession, has reason and 10 to believe that-eizure  11 of 1922 , (4) any person to whom a summons under sub-section (1) of section 37 of the indian income-tax act, 1922 or under sub-section (1) of section 131 of this act, or a riotice under sub-section (4) of section 22 of the indian income-tax act, 1922 or under sub-eection (1) of section 142 of thlll ,act was issued to produce, or cause to be produced, any books of iccount, or other documents has omitted or failed to produce, or cause to be produced, such books of account, or other documents as required by such summons or notice, or 20 (b) any person to wham a aummons or notice u aforeaaid has been or might be tued will not, or would not, produce, or cause to be produced my boob at account, or other doclpdenta which will be useful for, or relevant to, any proceeding under the indian income-tax act, 1922 or under thfi act, or (e) any person is in possession of any money, bullion, , jewellery or other valuable article or thing and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly income or property which has not 11 of 1m been c:usclosed for the purposes of the indian income-tax act, 1922 or this act (hereinafter in this section referred to as 10 the undisclosed income or property), he may authorise ant deputy director of inspection, inspecting aul8tant commissioner, assistant director of inspection or income-tax of!lcer (hereinafter referred to as the authorised of!lcer) to-15 (i) enter and search any building or place where be has reelon to suspect that such books of account, documents, money, bullion, jewellery t or other valuable article or thing are kept; ! - (ii) break open the lock of any door, box, locker, safe, xl almirah or other receptacle for exercis;n~ the powers conferred by clause (i) where the keys thereof are not avanable; (iii) seize any such book, of account other doeumeuts, money, 1mluon, jewellery, or other valuable article or thjdg foadd as a result of such search 25 (it7) place marks of identification on any books of eeount or other documents or make or cause to be made  extracta or copies therefrom; (t7) make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing 30 (2) the authorised omcer may requisition the ~ervtces of any police oftlcer or of any omcer of the central government,  or of both, to assist him for all or any of the purposes specifled  td sub-section (1) and it shall be the duty of every such omcer to comply with such' requisition 3' (3) the authorised officer may, where it is not practicable to sef7e any book of account, document, money, bullien, jewellery, or other valuable article or thing, serve an order on the owner or the person who is in immediate possession or control thereof that he shan· not remove, part with or otherwise deal with it 40 except with the previous permission of such ofticer and such oalcer may take such steps as may be neceuy ~ ma, compliance with this sub-section (4) the authorised officer may, during the com of the aearch or seizure, examine on oath any person who u founcl to be in possession or control of any bocb of account, clocumenta, money, bullion, jewellery, or other valuable article or thing ancl any statement made by such person during iuch examin'uon may thereafter be used in evidence in any proceed1q under the indian income-tax act, 1922 or under this act ii at 1822 10 (5) where any money, bullion, jewellery, or other valuabie article or thing (hereinafter in this aeotion and section 132a referred to' as the assets) is seized under sub-section (1), the income-tax officer, after aifording a reaso~ble op~ty to the person concerned for being heard and making sucli enquir)' as may be prescribed, shall, within ninety days of the ~ is mak~ an order, with the previous approval of the the commi  aioner,-(i) estimating the undisclosed income (ldcludfn the income from the undisclosed property) in a summry mad-ner to the best of his judgment on the basts of iuch matariall as are available with him; (ii) calculationg the amount of tax 011 the tdcome, estimated in acoordanec with the proviiioqi of the ;mdien income-tax act, 1922 or this act; ii 01 1m (iii) specifying the amount that will be required to satisfy any existing liability under this act and anyone or more of the acts specified in clause (4) of sub-lect1on (l) of sectien 230a in respect of w:hich such pec'3oa ie iii dafl»llt or is deemed to be in default, and retain in his custody such assets or-part thereot u are fn'·hfi opinion suftlcient to satisfy the aggregate of the amounts referred to in clauses (ii) and (iii) and forthwith releue the rem·t;r'tnl portion, if any, of the a~ to the parson from wm ~ they were seized: pro\1ded that if, after taking into account the matarlala available with him, the income-tax ofticer is of the view that it 1a not poui~e to aacertain 110 which particulal' ~ yu  "w'b such ~ or any part thereof relates, be may calculate the tax on such income or part thereof, as the case may be, as if such income or part thereof were the total income chargeable to tax at the rates in force in the financial year in which the assets  were sejzed: 5 provided further that where a penon has paid or made atiafactory arrangements for payment ol all the accounts refernd to in dauaes (ii) and (iii) or any pert thereof, the incoiile-tax officer may, with the previous approval of the commiuioner, release the assets or such part thereof as he may deem fit in the 10 circumstances of the case (6) the assets retained under sub-section (5) may be dealt  wtth in accordance with the provisions of section 132a (1) if the income-tax officer is satisfied that the seized assets or any part tbereafwere held by such person for or on behalf of 15 any other person, the income-tax officer may proceed under sup-section (5) against such other person and all the provisiona of this section slutll apply accordingly (8) the books of account or other documents selhd under  sub-section (1) shall not be retained by the authorised ofticer for 30 a period exceeding one hundred and eighty days from the date of the ~ unless the reasons for retaining the same are recordect by him in writing and the approval of the commissioner for such retention is obtained: provided that the commissioner shall not authorise the reten-2, tion of the books of account and other documents for a period exceeding thirty days after all the proceedings under the indian mcome-tax act, 1922 or this act in respect of the years for which the books of account orotber documents are relevant are completed 30 (9) the person from whose custody any boob of account or other documents are seized under su~tion (1) may make copi~ thereof, or take extracts therefrom, in the presence of the -authorised ofticer or any other person empowered by him in this behalf, at such place and time as the authorised 3' oftlcer may appoint in this behau (10) if a person legally entitled to the books of aceount or other docwnents seized under sub-section (1) objects for any n90n to tlte approval eiven by tb cojt\idhwjonar underubsection (8) he may make an application to the board statid& therein the reasons for such objection and requesting for the return of the books of account or other documents (11) if any person objects for any reason to an order made , - under sub-section (5), he may, within thirty days of the date of such order, make an applicat~on to such authority, as may be notifted in this behalf by the centra'l government in the ofbcia1 gazette (hereinafter in this section referred to 81 the notifled authority), stating therein the reasons for such objection and r&-io questing for appropriate relief in the matter (12) on receipt of the application under sub-section (10) the board, or on receipt of the application under sub-sectlon (11) the notified authority, may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit " (13) the provisions of the cede of criminal procedure, 1888 relating to searches and seizure shall apply, so far a8 may be, to searches and seizure under sub-section (1) (14) the boan:l may make rules in relaticm to an, search or seizure under this section; in parucular, aj)d without prejudice 20 to the aenerality of the foregoing power, such rules may provide for the procedure to be followed by the authoriseed deer <hi (i) for obtaining ingress into such building 01' place to be searched where free ingress thereto is not avallable; (ii) for ensuring safe custody of any books of account or other documents or assets seized explanation i-in computing the period of ninety days for the purposes of sub-section (5), any period durinl which any proceeding under this section is stayed by an order or injunction of any court shall be excluded  < - :,  11 of 18d 3'explanation 2-in this section, the word "proceeding" means any proceeding in respec~ of any year, whether under the indian income-tax act, 1922 or this act, which may be pending on the date on which a search is authorised under this section or which may have been completed on or before such date and includes also all proceedings under this act which may be commenced after luch date in respect of any year 132a (1) the assets retained under sub-section (5) of sec> tion 132 may be dealt with in the following manner, name1y:-tained uleta (i) the amount of the existing liability referred to in clause (iii) of the said sub--section and the amount ocl the liability determined on completion of the j:egular assessment , or reassessment for all the assessment years relevant to the previous years to which the income referred to in clause (i) , of that sub-section relates, and in respect of which he is in default or is deemed to be in default may be recovered out of such assets '  ie (ii) u the assets consist solely of money, or partly of money and partly of other assets, the income-tax ofbcer may apply such money in the discharge of the liabilities referred to in clause (i) and the assessee shall be discharged of such liability to the extent of the money so applied is (iii) the assets other than money may also be applied for the discharg~ of any such liability referred to in clause (i) as remains undischarged and for this purpose such assets ahall be deemed to be under distraint as if such distraint wu e1!ected by the income-tax officer under authorisation from 20 the commissioner under sub-section (5) of section 226 and the income:tax officer may recover the amount of such liabilities by the sale of such assets and such sale shall be eftected in the manner laid down in the third schedule (2) nothing contained in sub-section (1) shall preclude the:as recovery of the amount of liabilities aforesaid by any other mode laid down in this act (3) any assets or proceeds thereof which remain after the liabilities referred to in clause (i) of sub-section (1) are discharged shall be forthwith made over or paid to the persons from 30 whose custody the assets were seized (4) '(a) the central government shall pay simple intereat at the rate of five per ceut per annum on the amount by whleh the agpepte of money retained under section 132 and of the proceeds, if any, of the assets sold towards the disc:juaqe of the eldst- 3s lq liability referred to in clause (iii) of sub-section (5) of that , ,88dion exceeds the aarelate of the amounts required to meet the liabilities referred to in clause (i) of sub-section (1) of this section ' (b) such interest hall run from the elate ~ediately 40 followjq the aplrj of th period of lis molltha bold the date of the order under lub-lection (5) of section 131 to tile date of the replar ulessment or reassessment referred to in c:ia  (i) of sub-section (1) or, a the c:ue may be, to the date of last 01 luch assessments or reassessments' to 3 in section 271 of the principal act, after sub-eection (4), the amafollowing lub-sections shall be inserted, namely: _ ment oil iection "(4a) notwithstanding anything contained in clause (iii) 211 of lub-section (1), the commissioner may, in his discretion, reduce or waive the amount of minimum penalty lmposable on a person under the said clause if he is satisfied that such person-i$ (4) has, prior to the detection by the income-tax ofilcer, of the concealment of particulars of income in respect of which the penalty is imposable, or of the inaccuracy of particulars furnished in respect of such income, voluntarily and in good faith, made full and true disclosure· of such particulars; (b) has co-operated in any enquiry relating to the iiiel1 ment of luch income; and (c) haa either paid or made satisfactory arrangements for payment of any tax or interest payable in comequence of an order passed under this act in respect of the relevant assessment year: provi~ed that if in a case the minimum penalty tmposable under clause (iii) of sub-section (1) in respect of the relevant assessment year, or where such disclosure relates to more than one assessment year, the aggregate of the minimum penalty irnposable in respect of those years, exceeds a sum of rupees fifty thousand, no order reducing or waiving the penalty shall be made by the commissioner unless the previous approval of the board has been obtained ~ (4b) ·an order under sub-seetion (4a) shall be final and shall not be called in question before any ~ourt of law or any other authority" c_~ 4 in chapter xxii of the principal act, before bection 278, " following section shall be inserted, namely:-the idiertloil of ne  mctioll 2'f5a "275a whoever contravenes any order referred to in sub- contrasection (3) of section 132 shall be punishable with rigorous im- ventlon prisonment which may extend to two years and shall also be of order ~~~ = aub-hc-tion (3) of he-uoa 111  i in leetfon 2'19 of the princlpal aet,- aaledd-(1) in lub-lection (1), after the words "o1!enee under', the words, figures and letter "section 27~a or" shall be inlerted; (it) after lub-seetion (1), the following sub-section shall be inserted, namely:-"(la) a person shall not be proceeded against for an offence under section 277 in relation to the assessment for an assessment year in respect of which the penalty imposable upon him under clause (iii) of sub-seetion (1) of section 271 hal been reduced or waived by an order under sub-lec- 10 tlon (4a) of that section"; (iii) after 8ub-seetion (2), the following sub-section shall be idierted, namely:-"(3) where any proceeding has been taken against any person under lub-seetion (1), any statement made or account 15 or other document produced by such person before any of the income-tax authorities specifted in clauses (a), (b), (c), (d) and (e) of section 116 shall not be inadmisalb1e as evidence for the purpose of such proceedings merely on the ground that such statement was made or such account or other docu- 20 ment was produced in the belief that the penalty imposable woald 'be reduced or waived under sub-section (4a ) of section 271 or that the offence in resoect of which iuch proceecung was taken would be compounded" valida-, tion of eerta!n liul'chetl mad  i ady search of • buildin~ or place by an inspecting assistant 35 commissioner or income-tax oftlcer purported to have been made in pursuance of sub-section (1) of s'ction 132 of the priilclpal act be- fore the commencement of this act shall be deemed to have bean made in accordance with the provisions of that sub-section as amended by this act as if those provisions were in force on the day the 30  -'j;$earch was made and shall not be called in question before any court of law or any other authority merely on the ground-(i) that the inspecting assistant commissioner or the income-tax ofbcer made such search with the assistanee of any other penon; or 3' (it) that no proceeding under the indian income-tax act, 11 of 1822 1922, or the principal act was pending against the person concerned when the search was authorised under the said sllbesectlon 7 (1) the income-tax (amendment) ordinance; 1965 is he~by repeai repealed (2) notwithitanding such repeal, anything done or any action taken under the said ordinance shall be deemed to have beer1lone s or taken udder thia act as if this act had commenced on the 6th day of january, 1965  statement of objects and lu!asonsthe main object of the bill is to replace the income-tax (amendment) ordinance, 1965 (1 of 1965) the ordinance was promulgated on the 6th january, 11965 and contains provisions which were found to be immediately necessary, relating to searches and seizures, voluntary disclosures and validation ot certain searches made under section 1~ of the income-tax act, 1961 opportunity has also been  taken to include in the bill certain other amendments which are incidental or supplemental to the above matters the more important provisions of the bill are as follows:-the powers of search and seizure are being enlarged, enabling seizure of any money, bullion, jewellery or other valuable article or thing which represents either wholly or partly undisclosed income or property the income-tax officer is being empowered to retain such of the assets seized as he may consider necessary to satisfy the liability estimated by him in respect of the undisclosed income and also any existing liability under the direct taxes acts in respect of which the person concerned is in default or is deemed to be in default the balance, if any, will be returned forthwith the retained assets will be applied for the discharge of such existing liabilities and of the liability determined on regular assessment relating to the undisclosed income, in respect of which the assessee is in default or is deemed to be in default it is also clarified that proceedings in the course of which search warrants can be issued include future proceedings also; further, the commissioner is being empowered to reduce or waive the amount of minimum penalty imposable in the case of voluntary disclosure a person in whose case the penalty is so waived or redtreed will not be prosecuted in relation to the relevant assessments the notes on clauses e~lain the vario'us provisions of the bill ' ~ 1' t klushnamachalu  ," ~lt&u3e 2 of the bill substitutes a new section for the existing section 132 and also adds a new section 132a the new section 132 includes certain provisions in addition to the existing ones the new sub-section (1) provides another circumstance, in additi~n to ~e existing ones, in which search or seizure may be authonsed, tnz, where any money, bullion, jewellery or other valuable article or thing which represents either wholly or partly undisclosed income or property is believed to exist the power conferred on the commissioner under sub-section (1) is also being conferred on the director of inspection and further the authorisation by the director of inspection or the commissioner can also be to a deputy director of inspection or an assistant director of inspection for the purpose of search and seizure the authorised officer may break open the lock of any door or locker, safe,· almirah or any other receptacle where the keys thereof are not available the new sub-section (2) empowers, for the purposes of search and seizure, the authorised officer to requisition the services of any police officer or of any officer of the central government, or of both, to assist him where it is not practicable to seize any asset found during the search, the new sub-section (3) empowers the authorised officer to serve an order on the person concerned not to remove or part with or otherwise deal with it except with his previous pennission according to the new sub-section (4), during thet~urse of search and seizure, the authorised officer may examine on oath any person who is found to be in possession of books of account or documents and assets like money, bullion and jewellery this provision is intended to enable the income-tax officer to ascertain the true facts before an assessee can make up an explanation as a result of afterthought the statement made during such examination may thereafter be used in evidence in any proceedings under the indian incometax act, 1922 or the income-tax act, 1961 11  " '  ', the n~w sub-section (5) provides that where any asset is seized, then within 90 days of such seizure and with the previous approval of the  co~issioner, the income-tax officer shall pass an order esti  mating in a summary manner the undisclosed income (including the income from the undisclosed property), calculating the amount of tax on the same in accordance with the provisions of the la~ ~ ~~g the amount that will be required to satisfy any existmg liability under the direct taxes enactments in respect of which the person is in default or is deemed to be in default in computing the period of 90 days, any period during which any proceeding in this regard is stayed by an order or injunction of any court, shall be excluded (vide explanation1 to the new section 132) before making such an order the income-tax officer has to afford a reasonable opportunity to the person concerned for being heard and make such enquiry as may be prescribed the income-tax officer shall retain such assets or part thereof which are, in his opinion, sufficient to satisfy the aggregate of the amount of liability determined in respect of the undisclosed income and the existing liabilities in respect of which the assessee is in default or is deemed to be in default the remaining portion of the assets, if any, shall be forthwith released to the person from whose custody they were seized the aforesaid sub-section (5) further provides that if, after considering the materials available with him, the income-tax officer is of the opinion that it is not possible to ascertain which particular previous year or years such undisclosed income or any part of such income relates to, he may calculate the tax 1,on the same as if it were the total income chargeable to tax at the rates in force in the financial year in which ,the assets ~re seized , where, however, a person has paid or made satisfactory arrangements for payment of the amount of liability relating to the undisclosed income estimated by the income-tax officer and the existing liabilities aforesaid, income-tax officer may release such assets as he may deem fit for this purpose, the ~n~ome-tax officer has to obtain the previo11s approval of the commissioner i"'~~ b-section (6) provides that the assets retained under the ~e:-" suol sub-section (5) shall be applied in accordance with the prov181ons tlie provisions of the new section 132a the new sub-section (7) is sell-explanatory ' ub-sections (2), (3) and (4) have been re-numbered 8 th~:x~~:~;o) respectively with certain ~erbal changes conse-~je~tial to the provisions of the new sub-section (1) u any auet or proceeds thereof remain affer the aforesaid liabilities have been discharged, they will be forthwith paid or made over to the person from whose custody they were aeized  the mode of recovery prescribed by section 132a shall not preclude the recovery of the amount of the liability by any other mode laid down in the acl sub-section (4) of tne new sub-aection 132a provides for interest to be paid by the ·central government as compensation for retention of money seized and proceeds of assets sold in excess of the total tax liabilities against which they are applied where the aggregate of the amount retained under section 132 and the proceeds, if any, of the assets sold for the purpose of recovery of '"lte existing liabilities referred to in that section exceed the aggregate of the existing liabilities in default and the liability detpr-· mined on regular assessment, the central government shall pay simple interest at the rate of ~ per cent per annum on the amount of such excess the interest shall run from the date immediately following the end of six months from the date of the order under section 132 (5) to the date of regular assessment or reassessment relating to the undisclosed income, or, as the case may be, to the date of the last of such assessments or reassessments no interest wid be payable in relation to assets, other than money, wbich are not sold by the income-tax officer with a view to encourage voluntary disclosures of undisclosed income, c14use 3 inserts a new su'b-section (4a) in section 271 which empowers the commissioner, in his discretion, to reduce or waive the amount of minimum penalty imposable under section 271 (1) (iii) in the case of a person who has voluntarily and in good faith made full and true disclosih'e of his concealed income, before detection of the same by the income-tax ofticer and, in addition, has co-operated in any enquiry relating to the assessment of the concealed income a1:!!l has either paid or made satisfactory arrangements for payment' of any tax or interest which may be'come p~y­able in lespect of the income concealed where the amount of minimum penalty imposable under section 271 (1) (iii) in respect of all asseaament years involved exceeds rs 50,000, the previous approval of the board has to be obtained by the commissioner in order to ensure that an order under sub-section (3) of section 132 may not be contravened, clause 4 inserts a new section 275a which provides for punishment for contravention of such order c'l4u1e 5 amends sub-section (/) and inserts two new subsections, namely, (ia) and (3) in section 279 the amendment to sub-section (1) is consequential to the insertion of new section 275a su~section (la) provides that a personln whose case the penalty imposable under section 271 (1) (iii) has been reduced ar waived by the commissioner under sub-section (4a) of that section, shall not be liable to be prosecuted under section 277 in relation to assessment for the uaessment year in respect of which the penalty imposable has been reduced or waived sub-section (3) provides that where any prosecution has been started against any person, any statement made or account or other document produced by him before any of the income-tax authoritties of the rank of income-tax ofticer and above shall not be inadmlt-ble as evidence for the purpose of the prosecution merely on the ground that such statement was made or such account or other document was produced in the belief that the penalty imposable would be reduced or waived under sub-section 271 (4a) or that the particular offence would be compounded c1aue 6 validates certain searches purported to have been made tn" pursuance of section 132 (1) the clause is self-explanatory financial memorandum i sub-tection (4) of the new section 132a inserted by clauae 2 of the bill provides for interest to be paid by the central gcwermnent in certain cirewnstaaces the exact amount of interest so payabjje cannot be foreseen at the present, but it is expected that it would be of-the order of ra 25,000 the provisions of section 132 relating to seizure are also expected to· iawlve some aggitionat expenditure such as expedailiture on arranpments for safe custody of assets seized the amount of such expenditure cannot be b-eeeen at present with any degree of precision it i& expected, however, that such expenditure will be of the order of rs 1,00,800  memorandum regarding delegated legislationclause 2 of the bill would enable the board to fi-ame rules regarding the enquiry to be made for purposes of section 132(5) the clause also clarifies that the rules to be made by the bdard in relation to any search or seizure made under section 132 (1) include rules to provide the procedure to be followed in a search or seizure for obtaining ingress into a building or place where ingress thereto is not available, and for ensuring safe custody of any books of account, other documents or assets seized the matters in respect of which rules will be made are matters of procedure or detail -the delegation of legislative pewers is, tqer~ore, f)~ ~ n~ ~ctef'~ - '  - (g oj' 1161) - - - - 13z (1) wrere the cemmialionel\ in cgdsequenae gf informationin bia polleabion, has reason to believe tbal-pow  of ihi"ch and mizure ~g) uy perboll to whom a 'summons tmcier suh-!ledlon (l' of section 37 of the indie lneome tax act, 122 or under sub- 11 of 1922 aection (1) of sectton 131 of this act, or a notice under subsection (4) of section 22 of the indian income-tax act 1922 or " under sub-section (1) of section 142 of this act was issued to produce, or cauae to be produced, any boed of ' accouat or other documents bas omitted or failed to produce, or c8uae to be produced, such books of account or other documents as iequired by such summons or notice, or (b) any person to whom a summons or notice, as aforesaid has been or might be issued will not, or would not, produce or cause 10 be produced any books of account or other doc:umejlts which will be useful for, or relevant to, any proceeding under the indian income-tax act, 1922 or under this 11 of 1922 act, or (c) any person is in possession of any articles or things including money wholly disproportionate to his known sources of income, particulars of which will be useful for, or relevant to, any proceeding under the indian income-tax act, 1922 or 11 of 1922-this act, he may authorise any inspecting assistant commissioner or any income-tax oftlcer to enter and search any building or place where he has reason to suspect that such books of account, other documents artft!h!s or things inchiding money are kept and if as a ' result' of the search such books of account, other documents, articles or tbings including money are found, the inspecting assistant commissioner or the income-tax omcer, as the: case may be, may-(i) seize any such books of account or other documpots; (ii) place marks of identification on any such books of account or other documents or make or cause to be made extracts or copies therefrom; (iii) make a note or an inventory of any arttcies or things including money found which, in his opinion, will be usaful for, or relevant to, any proceeding under the indian income tax act, 1922, or this act (2) the books of account or other documents seized under 8ubsection (1) shall not be retained by the inspecting assistant 'commissioner or the income-tax ofticer for a period exceeding one hundred and eighty days from the date of the seizure unless the reuodl for retajning the same are recorded by him in writing and the approval of the commissioner for such retention is obtained: provided that the commissioner shall not authorise the retention of the books of account and other documents for a ppriod exceeding thirty days after all the proceedings under the indian income-tax act, 1922, or this act in respect of the years for which the books of account or other documents are relevant are completed (3) the person from whose custody any books of account or other documents are seized under sub-section (1) may make copies thereof, or take extracts therefrom, in the presence of, the incometax oftlcer or any other person' 1i11thorised by him, at such place and time as the ldcome-tax om~ ~ appoid~' in ~behajf'· ' (4) u a pe'rso~ tepily mtjtlecl to the' books of account or other documents seized under sub-section (1) objects for any reason to the approval given by the commissioner under sub-section (2) , he may make an application to the board stating therein the reasons for such objection and requesting for the return of the books of account or other documents (5) on receipt of the application under sub-section (4) the board may, after giving the appltesut'an opportunity of being heard, pass such orders as it thinks fl t (6) the provisions of the code of criminal procedure, 1898 relating to searches shall apply, so far as may be, to searches under sub-secti~l) of this section (7) the board may make rules in relation to searches under this section    -  271 (1) a person shall not be proceeded against for an offence prosecution und ection 276 or section 277 or section 278 except at the instance 10 be at er s instance of of the commissioner commls-(2) the commissioner may either before or after the institution siater of proceedings compound any such offence  - - -  a bnl ~c;r tq ~end the income-tax act, 1961 and ~ v~~  i c;rtiaq searches under that act -                                                            i              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                                                    •                                                                                                                                                                                                                           -  -(shri t t krishnamachari, minister of finance) 