Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 1188 - HC - Income TaxLegality of seizure operation u/s 132 of the Act – Seizure made at the residence and office- Held that:- Grammatically, it would make a mockery of the expression “or the authorised officer referred to in sub-section (1) of Section 132 before he takes action under clauses (i) to (v) of that sub-section”, which has parenthetical commas at either end to suggest such expression being a whole unto itself and an alternative to the cases of the authority under the provision being exercised by the Director General or a Director or a Joint Director or an Assistant Director or a Deputy Director by virtue of the opening lines of the sub-section preceding the relevant clause - It is elementary on any reading of Section 131(1A) of the Act that the five categories of officers, other than the authorised officer referred to in Section 132(1) of the Act, may exercise the authority under such provision, subject to meeting the other statutory requisites but without being impaired by the search and seizure process having been conducted under Section 132(1) of the Act - With respect, the provision admits of no other construction or interpretation. Since the notices under Section 131(1A) of the Act were issued in this case by a Deputy Director, he had due authority therefor - such officer possessed the treasure trove of information pertaining to the aforesaid four companies connected with the EMTA group and the petitioners’ nexus therewith, he had enough reason to suspect that income had been concealed or was likely to be concealed by the petitioners who were subject to his jurisdiction - There is no requirement, far less any statutory fiat, for the reasons to suspect or the basis for the suspicion to be disclosed in any notice issued under Section 131(1A) of the Act - In any event, the first of such notices that the petitioners assail, the one dated October 28, 2013, refers to a previous notice under Section 131(1A) of the Act that required the petitioners to appear before the Deputy Director on August 2, 2013 - The factum of such previous notice having been issued has been ignored by the petitioners - the petitioners have not been able to demonstrate any averment in the subsequent application filed in court that the petitioners did not receive such notice - Sections 131 and 132 of the Act are but the means to an end and not an end in themselves - It is evident that the petitioners perceived that if the means could be scuttled, the end would not come – Decided against Assessee.
|