Section 292C — Section 292C — Presumption: Search-Found…

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Statutory text — Income-tax Act, 1961

Presumption as to assets, books of account, etc..

292C. (1) Where any books of account, other documents, money, bullion, jewellery or other valuable article

or thing are or is found in the possession or control of any person in the course of a search under section 132

or survey under section 133A, it may, in any proceeding under this Act, be presumed—

(i) that such books of account, other documents, money, bullion, jewellery or other valuable article or

thing belong or belongs to such person;

(ii) that the contents of such books of account and other documents are true; and

(iii) that the signature and every other part of such books of account and other documents which

purport to be in the handwriting of any particular person or which may reasonably be assumed to

have been signed by, or to be in the handwriting of, any particular person, are in that person's

handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped

and executed or attested by the person by whom it purports to have been so executed or attested.

(2) Where any books of account, other documents or assets have been delivered to the requisitioning officer

in accordance with the provisions of section 132A, then, the provisions of sub-section (1) shall apply as if

such books of account, other documents or assets which had been taken into custody from the person

referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1) of section 132A,

had been found in the possession or control of that person in the course of a search under section 132.

Function in the statutory architecture

Section 292C creates presumptions about material found during a search under s. 132 or a survey under s. 133A. Where books of account, other documents, money, bullion, jewellery or other valuable article or thing are found in the possession or control of any person, it may be presumed in any proceeding under the Act that they belong to that person, that the contents of the books and documents are true, and that signatures and handwriting are of the person whose they purport to be, and that a stamped, executed or attested document was duly stamped, executed or attested.

The same presumptions apply where books, documents or assets are delivered to the requisitioning officer under s. 132A, as if they had been found in the possession or control of that person in a search.

Operative consequences

The burden shifts to the person in whose possession the material was found to rebut ownership, truth of contents or handwriting.
The presumptions are permissive ("may ... be presumed"), not conclusive.
The presumptions are available in any proceeding under the Act, not only the search assessment.

Status

Section 292C is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.

The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 524.

Case law on Section 292C

ITAT, High Court and Supreme Court judgments applying this section, on BharatTax.net, our income tax case law search.

Section 292C case laws

← All sections (940)Act 1961 hub

Income-tax Act, 1961	Income-tax Act, 2025
s. 292C(1): presumptions for books, documents and assets found in search or survey	s. 524(1)(a) to (d); the 2025 Act adds virtual digital assets, electronic information and computer systems, and a presumption about exchange of electronic information in s. 524(1)(e)
s. 292C(2): assets delivered on requisition under s. 132A	s. 524(2)

Section 292C — Presumption: Search-Found Documents

Case law on Section 292C