Presumption Under Section 292C--Whether Discretionary and Rebuttable

Pawan Prakash

A presumption is an inference of fact drawn from other known or proved facts. It is a rule of law under which courts or authorities are authorized to draw a particular inference from a particular fact, until and unless the truth of such inference is disproved by other evidence. Under Section 292C presumption is available as regards ownership of books of account, money, jewellery, etc., found during search or survey. The present write-up highlights the nature of presumption available under Section 292C.

1. Presumption available under Section 292C

 Section 292C as inserted by the Finance Act, 2007, with retrospective effect from 1-10-1975 provides that 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