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2013 (8) TMI 634 - HC - Income TaxLegality of search & seizure operations – Held that:- As per judgment in the case of Ajit Jain v. Union of India [2000 (1) TMI 41 - DELHI High Court], wherein it was held that even assuming that the amount found from the person was not reflected in the books of account of the Company, mere possession of such amount by the petitioner could hardly be said to constitute information which could be treated as sufficient by a reasonable person. Further, in the case of Dr. Mrs. Anita Sahai v. Director of Income Tax, [2004 (2) TMI 55 - ALLAHABAD High Court ], search and seizure operations were quashed observing that search and seizure can not be fishing expedition. Before search is authorized, the Director must on the relevant material have reason to believe that the assessee has not and would not have disclosed his income. On the basis of the above decisions, it has been held that mere possession of money, bullion, jewellery or such valuable article or thing per-se would not be sufficient to enable the competent officer to form a belief that the same had not been or would not be disclosed for the purpose of the Act. What is required is some concrete material to enable a reasonable person to form such a belief. It is, of course, true that such belief is a matter of subjective satisfaction of the competent authority. Such subjective satisfaction, however, must be formed on the basis of the material on record and objective assessment of such material and cannot be on the basis of a mere suspicion or apprehension that the income had not been or would not be disclosed for the purpose of the Act - In the result, the petition is allowed. Search and seizure operation is declared illegal and it is hereby quashed. Consequently, seizure of the gold ornaments under panchnama dated 26th July, 2012 is also quashed – Decided in favor of Assessee.
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