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Case lawIncome-tax Act 2025Chapter XXII › Section 489
Chapter XXIIwas s.278D

Section 489 of the Income-tax Act, 2025

Section 489 — Presumption as to assets, books of account, etc , in certain cases. Successor to s.278D of the 1961 Act.

Where this section sits

Section 489 is in Chapter XXII — Offences and Prosecutions, which runs from section 473 to section 498.

← Section 488  ·  Section 490 →

What this section does

Sub-section (1) applies where money, bullion, jewellery, virtual digital assets or other valuable articles, or books of account, other documents, information in electronic form as defined in section 261(g), information on a computer system as defined in section 261(e), or a computer system containing such information, were found in a person's possession or control during a search under section 247 and are tendered by the prosecution in evidence against him, or against him and a person referred to in section 484, for an offence under the Act: in that case the presumptions in section 247(7) apply, so far as may be, to those assets, documents or information. Sub-section (2) does the same where such material was taken into custody by an officer or authority referred to in section 248(1)(a), (b) or (c) and delivered to the requisitioning officer under section 248(2) before being tendered in evidence.

Why it is there

Section 247(7) supplies presumptions about ownership, truth of contents and signatures for material found in a search; this section carries those presumptions into a criminal prosecution so the department does not have to prove the same basic facts again. Sub-section (2) extends the same treatment to requisitioned material, which was seized by another authority rather than found directly in the search.

Who it applies to

What this means in practice

If the material was found in your possession or control during a section 247 search, or requisitioned under section 248 and handed over, the prosecution can rely on the section 247(7) presumptions in the criminal case — the burden of displacing them falls on you. The section adds no new presumption of its own; what it does is remove the argument that the presumptions are confined to assessment proceedings. Note that it reaches electronic material and computer systems expressly, by reference to the definitions in section 261(e) and (g).

An example

Illustrative only, and invented for this page. The figures are chosen to show the rule biting, not taken from any real matter.

Books of account and a laptop are found in a person's control during a search under section 247, and the department later prosecutes him for an offence under the Act, tendering that material in evidence against him and a person referred to in section 484. The presumptions section 247(7) raises about material found in a search apply, so far as may be, in the prosecution too, so the burden of displacing them falls on the accused rather than the prosecution having to prove those basic facts afresh. The position is the same where the material was never found in the search but was taken into custody by an officer or authority under section 248(1) and delivered to the requisitioning officer under section 248(2); and it makes no difference that what is tendered is information in electronic form under section 261(g), information on a computer system under section 261(e), or the computer system itself.

Where you meet this section

In a criminal prosecution for an offence under the Act, at the point where the department tenders search or requisitioned material in evidence before the trial court. You do not meet this section in an assessment — there what you meet is section 247(7) itself; this one exists to carry those presumptions across into the prosecution.

The words themselves

the provisions of section 247(7) shall, so far as may be, apply in relation to such assets or books of account or other documents or such information
s.489(1), Income-tax Act, 2025.

What people get wrong

What this replaced

The correspondence is the Income Tax Department’s own, from its comparison utility for the 1961 and 2025 Acts. A renumbering is the easy half; whether the words changed is the half that decides cases.

See the full 1961 to 2025 concordance.

Case law carried across

Read this before you rely on it. Every decision below was decided under the Income-tax Act, 1961. It appears here because it is tagged to a 1961 provision that the department’s own mapping carries to section 489. That is an inference we have drawn, not a holding on the new section: where the words changed in the move, the reasoning may not survive. Treat this as the place to start looking, not as authority on the 2025 Act.

Read with

What this page does not tell you. It does not reproduce the section. Everything above was written from the section’s own text as the Income Tax Department publishes it — the text is here, and nothing here is advice on your facts. Where a figure matters, read the sub-section it comes from.