Section 251 — Copying Retention Release | ITA 2025

Section 251 — - COPYING / EXTRACTION / RETENTION / RELEASE OF SEIZED ITEMS

Section 251 governs the procedural lifecycle of SEIZED BOOKS / DOCUMENTS / ASSETS post-search under s. 247 / requisition under s. 248. The provision authorises authorised officer / AO to: (a) make copies / extracts of seized items; (b) RETAIN seized items for specified period; (c) RELEASE items in specific circumstances (e.g., perishable items / specific request); (d) maintain proper inventory and access mechanisms. Critical procedural protection for assessees -- improperly retained / lost items create AO accountability; assessee rights to copies / inspections preserved.

Statutory text — Income-tax Act, 2025

Marginal note -- Copying / extraction / retention / release

(1) Where the authorised officer referred to in section 247(1) has no jurisdiction over the person referred to in section 247(1)(a) or (b), assets and material seized or requisitioned under section 247(1) to 247(4) shall be handed over to the Assessing Officer having jurisdiction over such person within a period of one hundred and eighty days from the date on which a search is initiated under section 247 or requisition is made under section 248 and such Assessing Officer thereupon shall exercise the powers under sub-sections (2) and (3).

(2) The authorised officer shall, on an application made by the person from whose custody any material seized or requisitioned, are seized under section 247(1) to (4), allow such person, in the presence of such officer or any other person empowered by such officer in this behalf, to make copies thereof or take extracts therefrom, at such place and time as appointed by such officer.

(3) The authorised officer may––

(a) retain the assets and material seized or requisitioned, under section 247 or 248, up to one month from the end of the quarter in which the order of assessment or reassessment or recomputation is made under section 270(10) or section 271 or section 279 or section 294(1)(c);

(b) retain such assets and material seized or requisitioned, beyond the period specified in clause (a), after recording reasons in writing and obtaining approval from the approving authority.

(4) The approving authority shall not allow the retention of assets and material seized or requisitioned, beyond thirty days from the date on which all the proceedings under the Income-tax Act, 1961 (43 of 1961) or this Act in respect of the years for which the assets and material seized or requisitioned are relevant, are completed.

(5) If a person legally entitled to the assets and material seized or requisitioned under section 247(1) to (4) or section 248, objects for any reason, to the approval given by approving authority under sub-section (3)(b), he may make an application to the Board stating therein the reasons for such objection and requesting for the return of the assets and material seized or requisitioned and the Board may, after giving the applicant an opportunity of being heard, pass such orders as it thinks fit. Power to call for information.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 251	INCOME-TAX ACT, 1961 -- s. 132B / 132(8)
Authorised officer copying / extraction power	1961 s. 132(8) / 132A(2)
Retention period (typically 60 days max)	1961 s. 132(8) Proviso
Extension by Pr CIT / CIT	1961 s. 132(8) Proviso
Release procedures	1961 s. 132B(1) Proviso

STATUTORY ARCHITECTURE

LIFECYCLE OF SEIZED ITEMS: (I) IMMEDIATE POST-SEIZURE: items inventoried; panchnama signed; held in CBDT-prescribed strong room. (II) COPYING / EXTRACTION: authorised officer / AO may make: (a) Photocopies of documents; (b) Extracts of relevant portions; (c) Photographs of valuables / records; (d) Electronic copies of digital records. Original items continue retained for verification / proceeding purposes. (III) RETENTION PERIOD: (a) BASE PERIOD: typically 60 days from search date; (b) EXTENSION: with Pr CIT / CIT approval and reasons; (c) DURING ASSESSMENT: items may be retained till block assessment completion. (IV) RELEASE: items released in: (a) Perishable items requiring early release; (b) After assessment completion (excess over liability); (c) On assessee's reasoned application; (d) Court / Tribunal order. (V) ASSESSEE RIGHTS: (a) Inspection of seized items; (b) Copies of inventory / panchnama; (c) Specific request for early release with security.

PRACTITIONER NOTES

(i) INVENTORY VERIFICATION -- comprehensive inventory + photographs at panchnama. (ii) RETENTION CHALLENGE -- if 60-day expired without extension, demand release. (iii) PERISHABLE / VALUABLE -- early release applications with adequate security. (iv) DAMAGE / LOSS -- AO accountable for damage / loss to seized items; document any deterioration. (v) POST-ASSESSMENT RELEASE -- excess seized over liability returned with interest @ 0.5% pm (s. 250).

CROSS-REFERENCES

Section 247 -- Search and seizure.
Section 248 -- Power to requisition.
Section 250 -- Application of seized assets.
Section 294 -- Block-assessment procedure.

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