[Section 132A]- Power to Requisition Books of Account, etc.

Section 132A empowers the Income Tax Department to requisition (take custody of) books of account, documents, money, bullion, jewellery, or other valuable assets that are already in the possession of other government authorities (such as police, ED, Customs, etc.) if they are suspected to represent undisclosed income.

1. When Can Requisition Be Made?

The Principal Director General, Director General, Chief Commissioner, or Director of Income Tax can authorize requisition if they have “reason to believe” that:

• The assets/documentsbelong to a person who has not disclosed income or evaded taxes.
• Such items are in the custody of another government agency(e.g., Enforcement Directorate, Police, Customs).

2. Procedure for Requisition

• Authorization Required: A written ordermust be issued by a senior tax officer (Director/Principal Commissioner or above).
• Request to Concerned Authority: The Income Tax Department requests the custodian agency(e.g., ED, Police) to hand over the assets/documents.
• Handing Over Possession: The concerned authority must surrender the itemsto the Income Tax Department.

3. What Can Be Requisitioned?

• Books of accounts, documents, digital records(hard disks, pen drives).
• Cash, jewellery, bullion, or other valuablessuspected to be undisclosed income.

4. Rights of the Taxpayer

• Copy of Requisition Order: The taxpayer can request a copy of the requisition order.
• Opportunity to Explain: The taxpayer can provide explanations for the seized assets.
• Legal Recourse: If the requisition is illegal, the taxpayer can challenge it in High Court/Supreme Court.

5. Difference Between Seizure (Section 132) & Requisition (Section 132A)

Consequences of Requisition

• The requisitioned assets are treated like seized assetsunder Section 132.
• The taxpayer must explain the sourceof the requisitioned assets.
• If unexplained, they may be taxed under Section 115BBE (60% tax + 25% surcharge + cess).
• Prosecutionmay apply in case of wilful tax evasion.