Section 254 — Power to Collect Information | ITA 2025

Section 254 — - POWER TO COLLECT CERTAIN INFORMATION

Section 254 is the substantive equivalent of 1961 s. 133B -- the provision dealing with power to collect certain information within Chapter XIV (Tax Administration) framework. Critical for operational tax administration; defines authority structure / powers / procedures / safeguards. Practitioner relevance: every assessment / verification / compliance interaction with tax authorities involves these provisions.

Statutory text — Income-tax Act, 2025

Marginal note -- Power to collect certain information

(1) Irrespective of anything contained in any other provision of this Act, an income-tax authority may, for the purposes of collecting any information which may be useful for, or relevant to, the purposes of this Act, enter––

(a) any building or place within the limits of the area assigned to such authority; or

(b) any building or place occupied by any person in respect of whom such authority exercises jurisdiction, at which a business or profession is carried on, regardless of the fact that such place be the principal place or not of such business or profession and require any propri- etor or employee or any other person, who may at that time and place, be attending in any manner to, or helping in, or carrying on of such business or profession, to furnish such information as may be prescribed.

(2) The income-tax authority may enter any place of business or profession referred to in sub-section (1) only during the hours at which such place is open for the con- duct of business or profession.

(3) The income-tax authority acting under this section shall, on no account, remove or cause to be removed from the building or place wherein it has entered, any books of account or other documents or any cash or stock or other valuable article or thing.

(4) For the purposes of this section, “income-tax authority” means––

(a) a Joint Commissioner, or a Joint Director or an Assistant Director or an Assessing Officer; and

(b) an Inspector of Income-tax, authorised by the Assessing Officer to exercise the powers conferred under this section in relation to the area in respect of which the Assessing Officer exercises jurisdiction or part thereof. Power to inspect registers of companies.

STATUTORY ARCHITECTURE: Power to collect certain information is part of the foundational tax administration framework under Chapter XIV. The provision establishes the legal basis for power to collect certain information and operational mechanics. Key practitioner aspects: (i) authority hierarchy clarity; (ii) procedural compliance; (iii) constitutional safeguards (Articles 14, 21 -- equality before law / personal liberty); (iv) appellate / writ remedy availability for procedural violations. The 2025 Act preserves the substantive 1961 framework while modernising terminology and incorporating post-2020 faceless administration architecture.

PRACTITIONER RELEVANCE

Compliance with this provision is mandatory for any tax administration interaction. Procedural violations may give rise to writ jurisdiction under Articles 226 / 32 of the Constitution. Assessment-level review through CIT(A) / NFAC / ITAT / High Court appellate routes available. CBDT circulars / instructions provide operational guidance.

CROSS-REFERENCES

Section 236 -- Income-tax authorities.
Section 247 -- Search and seizure.
Section 253 -- Powers of survey.
Sections 237-261 -- Tax administration framework.
Constitutional Articles 14 / 21 / 226.

← All sections (537)Act 2025 hub

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 -- s. 254	INCOME-TAX ACT, 1961 -- s. 133B
Power to collect certain information	1961 s. 133B