Income Tax Department surveys Raymond's premises, company discloses in regulatory filing

On Thursday, some Income Tax Department officials surveyed Indian premises belonging to Raymond, a leading Indian textile company. Raymond stated in a regulatory filing on Friday, "The officials visited the company's offices and manufacturing units in India to conduct survey action under Section 133A of the Income Tax Act, 1961." Raymond Lifestyle and Raymond Realty disclosed this information in information provided to stock exchanges. The IT survey is still ongoing.

A survey under Section 133A of the Income Tax Act is different from a search operation. While its scope is limited, its powers are sufficient and comprehensive to detect potential tax evasion on income earned.

According to the Bombay Chartered Accountants Society (BCAS), before exercising this power, the Income Tax authority must fulfill only a few limited preconditions. During an IT department survey, officers have the right to inspect account books and other documents, place identification marks on them, and make partial statements or copies of them. They can also seize account books or documents. However, they cannot be retained for more than ten working days without the permission of the Chief Commissioner or Director General.