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2016 (7) TMI 209

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..... on either side have also been considered in extenso. The learned single Judge came to the conclusion that there was no arbitrariness or constitutional invalidity in the amendment in question. The standards to be applied when deciding the constitutional validity of a fiscal statute were also dealt with. The question whether right to privacy is a fundamental right or only a legal right as recognized in the Law of Torts is itself pending consideration before a Constitution bench of the Apex Court having been referred for an authoritative pronouncement by a three member bench in Justice K.S.Puttuswamy v. Union of India [2015 (8) TMI 526 - SUPREME COURT]. Even if it is a necessary corollary to the right to life, such a right would be subject .....

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..... x Act, 1961 which adds the words 'inquiry or' in the main section and adds the second proviso thereto. The relevant provision of the I.T.Act reads as follows:- Section 133: Power to call for information The Assessing officer, the Deputy Commissioner (Appeals), the Joint Commissioner or the Commissioner (Appeals) may, for the purposes of this Act,- xxx xxxx xxxx xxx (6) require any person, including a banking company or any officer thereof, to furnish information in relation to such points or matters, or to furnish statements of accounts and affairs verified in the manner specified by the Assessing Officer, the Deputy Commissioner (Appeals) the Joint Commissioner or the Commissioner (Appeals), giving information in re .....

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..... ave preferred this appeal. 3.Heard Sri.V.G.Arun, Sri Mathew B Kurian, Sri O.D.Sivadas and Sri.P.I.Georgekutty, learned counsel for the appellants and Sri. Christopher Abraham, learned standing counsel appearing for the Revenue. 4.Learned counsel for the appellants would contend that right to privacy is a necessary corollary of the right to life and human dignity and cannot be lightly interfered with. A law which violates the right to privacy is violative of the fundamental rights of the citizen and is thus liable to be struck down. They would contend that a roving and fishing inquiry seeking details of persons against whom no proceedings are pending or even contemplated under any fiscal statute is clearly a licence to the Revenue to e .....

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..... tention of Section 133 (6) and other like provisions in the Act is to gather information which could be crucial for the nation's economic interests. Curbing the menace of black money which tends to erode the very foundation of the nation's economy is the ultimate object of all provisions relating to search, seizure, inspection and gathering of information with regard to financial transactions. It is to be remembered that what is sought for is only the details of customers or members who hold deposits having a value specified in the circular. The notices issued in the instant case refer to a list of persons having a deposit of ₹ 5 lakhs and interest income exceeding ₹ 10,000/-. It is submitted by the learned counsel for t .....

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..... alidity of a provision of law and attempts should be made to construe the law to make it consistent with its constitutional validity. It is further submitted that apart from this rebutable presumption as to the constitutional validity of a statute, it is stated that the Apex Court has further held that in matters of laws relating to economic activities, such laws should be viewed with a greater latitude that laws touching civil rights such as freedom of speech, religion etc. Reliance is placed on the decisions of the larger Bench of the Apex Court in R.K.Garg v. Union of India [AIR 1981 SC 2138] and Government of Andhra Pradesh and others v. P.Laxmi Devi [(2008)4 SCC 720]. 8. It is submitted by the learned counsel for the Revenue tha .....

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..... ge after considering the safeguards incorporated in the statute found that sufficient guidelines were provided to guard against possible misuse of the provision. The decisions cited on either side have also been considered in extenso. The learned single Judge came to the conclusion that there was no arbitrariness or constitutional invalidity in the amendment in question. The standards to be applied when deciding the constitutional validity of a fiscal statute were also dealt with. 10.The question whether right to privacy is a fundamental right or only a legal right as recognized in the Law of Torts is itself pending consideration before a Constitution bench of the Apex Court having been referred for an authoritative pronouncement by a th .....

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