Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (5) TMI 596 - HC - Income TaxUndisclosed income or property - Search and seizure - Block assessment - search was concluded on 5-4-2002 while the present writ petition has been filed on 15-3-2004 - Held that:- The petitioners are very much associated with the block assessment proceedings but never objected. Thus they presumably accepted the search operation as valid during all this period over a span of two years. Had they ever felt aggrieved, they should have challenged the search warrant shortly or immediately after the close of the search which according to the department concluded on 5-4-2002. It is true that no period of limitation for filing a writ petition is prescribed but it is also equally true that an aggrieved person should approach the Court for redressal of his grievances with promptitude - writ petition liable to be dismissed on the ground of laches Whether department had material to have reason to believe that the petitioners have undisclosed income or assets - Held that:- The nature of construction, the facilities attached to the hospital and the attending and surrounding circumstances were investigated and examined before hand and therefore, on being satisfied, satisfaction note was drawn - The material thus collected showed that officer concerned could have reason to believe that the petitioners were in possession of money, bullion etc., wholly or partly undisclosed income or asset - The exercise of power under section 131(1A) is contemplated in a situation anterior to exercise of power under section 132 - The striking feature of the provision is that the Income-tax Authorities mentioned in sub-section (1A) have been empowered to exercise the power notwithstanding the fact that no proceeding with respect to such person or class of person are pending before him or any other Income-tax Authority - To overcome it, section 131(1A) was enacted giving powers of discovery/production of evidence etc., to Director General, or Director or Joint Director etc., notwithstanding the fact that no proceeding is pending before them - Decided against the assessee
|