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2019 (6) TMI 52 - HC - Income TaxValidity of Search and seizure proceedings - petitioner has contended that powers u/s 131(1) can be invoked only if the proceedings are pending, which is countered by the respondents with reference to Section 131(1A) - HELD THAT:- If power u/s 131(1) is held to be exercisable at any time and at any stage, proceeding or no proceeding, pending or not pending, instituted or not instituted and regardless of whether there is or there is not reason to believe, it may as well result in mischief and/or likely abuse and/or arbitrariness. A completed assessment is a valuable right. It cannot be lightly ignored nor can it, at the mere whim of the officer, be put into jeopardy. To permit such a course would be akin to permitting entry into the penumbra so speculative uncertainty. For reopening an assessment, the Act sets down stringent conditions. The same must first be fulfilled before issuing summons to the assessee. A request simpliciter to the assessee to assist without anything more and without any consequence in default may stand upon an altogether different footing than a summons u/s 131(1) with penalty in default of compliance therewith. Such, however, is not the case here.” Similarly, we are in agreement with the argument of the learned counsel for the petitioner that provisions of Section 131(1) could be invoked only if some proceedings were pending. In the instant case there was only a survey operation and no proceedings were pending at that point of time. But the income-tax authority exercised the powers of a court in the absence of any pending proceedings. This issue was determined by a Division Bench of Patna High Court in Rina Sen v. Commissioner of Income-Tax and others [1998 (8) TMI 76 - PATNA HIGH COURT] To our minds the income-tax authority violated the procedure completely. Nowhere was any satisfaction recorded either of noncooperation of the petitioner or a suspicion that income has been concealed by the petitioner warranting resort to the process of search and seizure. No hesitation to conclude that the present petition deserves to succeed. The impugned action of the respondents is quashed.
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