During my 2nd OJT at Faridabad, we went for a Survey in 4 different groups. Around 8 people were there in each team with Police personnel. We took the entire premises under our control as soon as we reached there. The assesse was a Jeweller. We searched the entire premises and checked the back door, if any. All the mobiles were taken into our custody. The assesse was taken by a shock. He suddenly insisted upon calling up his business partner. However, despite repeated calls, the Partner did not turn up. Then, in general, certain preliminary questions were asked from the assessee viz.
· Do you trade only in gold ?
· How much gold stock do you have ?
· From where do you purchase ?
· Who’s your CA ?
· What is your main work ? Sale or Repair ?
Then, I only volunteered for recording the statement of the assesse. We, thereafter began recording the statement with the following questionnaire :
1. Please identify yourself.
2. Please give details of your business concerns and sister business.
3. Please give details of your family members, who have interest in the firm.
4. What are the sources of your income ?
5. Please furnish details of your income tax / details of income tax of firm.
6. Please give details of any investments made during the FY or in PY.
7. Please give details of the vehicles owned / issued by business concern.
8. Please furnish the details of bank accounts.
9. Please give details of immovable assets held by the business concern.
10. Any other concerns, if any, operating from this premises.
11. Do you maintain regular books of a/c ? Where are these kept ?
12. Furnish details of purchase bills , if any , which have not been entered into books of a/c & goods have been received or yet to be received.
13. Please produce the goods received for repair (gold, diamond or silver) as on today.
14. Give details upto the date til which books of a/c have been written.
15. Do you maintain stock register ?
I, somehow, was not able to stay back till the conclusion of search and left the premises by 10.30pm. Hence, this questionnaire was to be concluded by the ITO present there. The Valuation Officer also showed up. However, he was too late. He did the entire valuation of the stock present in the following format :
Gross weight in grams
Net weight approx.
Description of Stone’s set
Approx. weight of stones
Value of stones
The valuation was done for following items :
~ Ladies ring
~ Gents rings
~ Mixed ornaments
~ Nosepin in diamonds
~ Gents ring and tops in diamond
~ Bracelet and Kangans
~ Gold sets
~ Silver ornaments (Payal, utensils, coins, Mix, Murti)
~ Moti, Pukhraj and Pearls
~ Gold coins
~ Brick piece
This experience of survey u/s 133A was a great learning experience. This shows how much impact and influence does the income tax department have in the public. The surrender and disclosure in this case was to the tune of Rs.40 Lakhs. Similar amount was disclosed in the other 2 cases also but in the 4th case, we managed to have surrender to the tune of Rs.81 Lakhs. These Surveys have a huge deterrent effect in the market.
People know that they will now have to keep their books in order otherwise the Income Tax people will grab them.