“COMPARATIVE PROVISIONS OF SEARCH UNDER INCOME TAX AND GOODS AND SERVICE TAX LAWS”

Abstract

The word 'Search' is not defined under Income Tax Act, 1961 as well as Goods and Service Tax Act, 2017. However, in common parlance search means to look out, to seek or to find something the presence of which is suspected. Meaning of the term 'Search' can be noticed in the decision of Kerala High Court[1] wherein it was mentioned that, "the word 'Search', considering the object and scope of the section, should not be given a far too technical meaning. The word 'Search' has varied meanings and it should be given the general meaning 'to look for' or 'seek'.”

Income Tax Act contains provisions pertaining to search and survey whereas the Goods and Service Tax Act provides for search and Inspection. Inspection is not search; these are two different proceedings and inspection is a permitted method to assess a taxpayer’s premises, but only as an anti- evasion measure as laid down in the law in the form of ‘pre-requisite’ to invoke the exceptional powers allowed.

The study delves into an analysis of the provisions of search and inspection in both Income Tax and GST laws.

[1] Assainar vs. ITO, 101 ITR 854[1]