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Rule of Legal Presumption

Section 292C of the Income tax Act 1961 provides where books of account, other documents, money bullion, jeweler or other valuable article or thing are or is found in the possession or control of an person in the course of search under section 132 or survey under section 133A, it may, in any proceeding under the Income tax Act, be presumed:-

  1. that such books of account, other documents , money, bullion, Jewellery or other valuable article or thing belong or belongs to such person;
  2. that the contents of such books of account and other documents are true; and
  3. that it is signed /written by such person where it is purported to be so signed and written.

Even a seized document can be in the form of loose papers or a simple noting and this can go adversely against such person.

The word ‘may’ suggest that the presumption can be rebutted but to be successful it must be done upfront in the beginning and not later before the Court/Tribunal.


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