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2022 (4) TMI 41 - HC - Income TaxValidity of Search u/s 132 - suppression of income as the profit declared is contrary to the actual profit received. - assessee has been receiving unaccounted cash and making cash payment for the land being alienated/sold/purchased - satisfaction note records that the information has been gathered through telephone enquiry to the effect that the assessee is in possession of undisclosed properties. HELD THAT:- Assessee would be in possession of money/bullion/ jewellery/other valuable article or thing which represents partly or wholly the income of the assessee mentioned in Table-1 and accordingly, search and seizure action requires to be carried out. Though the use of the words 'reason to suspect' is found in the said Confidential Note produced before the Court, a perusal of the Note and taking note of the reference to particular transactions, the discrepancy between the income declared and the profits from the projects which is detailed in the material would clearly amount to material being available which would be sufficient for constituting 'reasons to believe' leading to exercise of power under Section 132. It cannot be stated that the exercise of power invoking Section 132 in the present case in light of the material produced before the Court is one that would call for interference in exercise of power under Article 226 of the Constitution of India. The power for re-assessment is no doubt a remedy available to the Authority but in light of the information as detailed in the note, grounds have been made out for exercise of power u/s 132(c) in the present case and it cannot be said that the said action is either malafide/arbitrary/capricious. Accordingly, the Court finds no reason for interfering with the action taken under Section 132. Liberty is however kept open for the petitioner to challenge the impugned orders in appropriate proceedings. Other contentions of the petitioner are kept open
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