ITD using Digital Forensics & Financial Analysis experts during Search operations

ITD using Digital Forensics & Financial Analysis experts during Search operations

Income Tax Department deploying Digital Forensics & Financial Analysis Experts during the conduct of a Search and Seizure action and follow up work.

In a world of rapidly changing technology and high data encryption, the Income Tax Department particularly the Investigation Wing is utilising the services of experts in the field of digital forensics and financial analysis services during the conduct of a Search and Seizure action and follow up work.

These experts are hired for carrying out Digital Forensics & Analysis and allied services including:

1. Password-breaking in all possible Operating System environments, mobile platforms. This include spring boarding and jail breaking for iOS devices, and Rooting for Android devices to access data when the target person is non-cooperative. Jailbreaking for IOS device means eliminating security layers designed to protect personal information and iOS device. SpringBoard is the standard application that manages the iPhone’s home screen.

2. Remote access of databases through VPN/SSID based applications or other such architecture in use by present day businesses spread over distant geographical locations for storage and recovery of financial data,

3. Recovery of deleted data from computers which include retrieving data from servers where data has been deleted and where databases have been modified. Also it include recreation from partial recovered data 

4. Analysis of electronic data/electronic evidence assigned to it by the Income tax Department and submit a report in writing for the purposes of the Indian evidence Act.

5. Review and Analysis of Data shall including Bank Statement Analysis, Analysis of emails, social media chats, financial data on applications like Tally, Tally ERP, SAP, Oracle or any other customised RDBMS application using software tools, database Analysis through software tools etc, relationship resolution & presentation of analysed data.

6. Limited software coding.

These forensic experts are given the basic training by ITD and are required to follow and record Standard Operating Procedures for handling of digital evidence, and as per legal requirements to preserve the legal sanctity and evidentiary value of the data/electronic evidence. They are required to carry out forensic acquisition, restoration & analysis as per prevailing industry technical standards for handling digital data and devices. The standards should meet the legal requirements of Evidence Act and any guidelines that may be issued by the ITD to preserve the legal sanctity and evidentiary value of the data/electronic evidence. A fair extraction of the data should be carried out. 

• Related party transaction u/s 40A(2) shall be treated as bona fide, unless evading tax
• ‘Transfer of property’ not include ‘acquiring’ of property or ‘purchasing’ of property – ITAT
• AO was not justified in questioning cash withdrawals from bank account – ITAT
• Return/Balance sheet filed within limitation extended by SC to be considered within time
• Satisfaction Note u/s 153C – term immediate cannot be extended to unreasonable delay