Section 524 — Presumption as to assets, books of account…

Section 524 of the Income-tax Act, 2025 corresponds to s. 292C of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Section 524 raises presumptions about books of account, documents, assets, information in electronic form and computer…

Section 524 — PRESUMPTION AS TO ASSETS, BOOKS OF ACCOUNT, ETC.

Section 524 of the Income-tax Act, 2025 corresponds to s. 292C of the Income-tax Act, 1961.

Statutory text — Income-tax Act, 2025

( 1) Where any books of account, other documents, money, bullion, jewellery, v irtual digital asset or other valuable article or thing or any information in electronic form as defined in section 261(g) or on a computer system as defined in section 261(e) or any computer system containing the said information, is found in the possession or control of any person in the course of a search under section 247 or survey under section 253, it may, in any proceeding under this Act, be presumed—

(a) that such books of account, other documents, money, bullion, jewellery, virtual digital asset or other valuable article or thing such information or computer system belong or belongs to such person;

(b) that the contents of such books of account and other documents or such information or computer system are true;

(c) that the signature and every other part of such books of account and other documents, which purports 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 the handwriting of that person;

(d) 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; and

(e) that exchange of such information in electronic form, or on such comput- er system purported to be exchanged between any parties, is exchanged between the parties thereto.

(2) Where any books of account, other documents or assets have been delivered to the requisitioning officer as per section 248, 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 sub-section (1)(a) or (b) or (c) of the said section, had been found in the possession or control of that person in the course of a search under section 247. Authorisation and assessment in case of search or requisition.

STATUTORY ARCHITECTURE

Section 524 raises presumptions about books of account, documents, assets, information in electronic form and computer systems found in the possession or control of a person in the course of a search under s. 247 or a survey under s. 253. The presumptions go to ownership, truth of contents, handwriting, due execution and electronic exchanges. Sub-section (2) extends the same presumptions to material delivered to the requisitioning officer under s. 248.

KEY ELEMENTS

Items covered: books of account, other documents, money, bullion, jewellery, virtual digital asset or other valuable article or thing, information in electronic form as defined in s. 261(g), information on a computer system as defined in s. 261(e), and any computer system containing that information.
Clause (a): the items belong to the person in whose possession or control they were found.
Clause (b): the contents of the books, documents, information or computer system are true.
Clause (c): signatures and other parts purporting to be, or reasonably assumed to be, in the handwriting of a particular person are in that person's handwriting.
Clause (d): a document stamped, executed or attested was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested.
Clause (e): an exchange of information in electronic form, or on a computer system, purported to be between parties is exchanged between them.
Sub-section (2): items delivered to the requisitioning officer under s. 248 are treated as if found in the course of a search under s. 247 in the possession or control of the person from whom they were taken into custody, as referred to in s. 248(1)(a), (b) or (c).

CHANGES FROM THE 1961 ACT

The counterpart is s. 292C of the 1961 Act. The section now expressly covers virtual digital assets, information in electronic form and computer systems, none of which appeared in s. 292C(1) of the 1961 Act. Clause (e), on electronic exchanges between parties, is new. The handwriting and stamping presumptions, combined in one clause in the 1961 text, are split into clauses (c) and (d). References to s. 132, s. 133A and s. 132A of the 1961 Act become s. 247, s. 253 and s. 248.

PRACTITIONER NOTES

The presumptions are permissive ("may ... be presumed") and apply in any proceeding under the Act.
They are triggered only by items found in a search under s. 247 or a survey under s. 253, or delivered under s. 248; material obtained otherwise is not within the words of the section.

CROSS-REFERENCES

s. 247 — search and seizure, in the course of which the items are found.
s. 253 — powers of survey, in the course of which the items are found.
s. 248 — powers to requisition; delivery to the requisitioning officer under it attracts sub-section (2).
s. 261(e) and s. 261(g) — definitions of "computer system" and "electronic form".
s. 292C of the 1961 Act — the corresponding provision.

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