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2016 (7) TMI 939 - MADRAS HIGH COURT

2016 (7) TMI 939 - MADRAS HIGH COURT - TMI - Non-furnishing of the statements - whether survey conducted by the officers under Section 133A of the Act in the business premises of the petitioner and the residences of the Director is illegal ? - Held that:- It is not in dispute that none of the persons, who have given statements as mentioned above, have approached this Court for furnishing the copies of the statements. The petitioner, the company represented by one of its Directors, who has not gi .....

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given by others, but the petitioner is entitled to look into those statements is a flawed submission, especially when, investigation is going on and each individual has given statements. Therefore, acceding to the prayer sought for by the petitioner would definitely hamper the investigation. - The survey was conducted in various places and the residences of the other Directors/Employees/Consultant etc., and those persons have not joined the petitioner in seeking such a prayer. That apart, if .....

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against any persons much less the company. - In the light of the above, this Court is of the view that the prayer sought for cannot be granted for the reasons set out in the preceding paragraphs, as it would amount to interference of an investigation and injuncting a summon procedure. - W. P. No. 20848 of 2016 - Dated:- 18-7-2016 - T. S. Sivagnanam, J. For the Petitioner : Mrs. Dr. Anita Sumanth for Mr. R. Parthiban For the Respondents : Mr. G.Rajagopal, Addl., Solicitor General of India fo .....

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1.12.2015 and 02.12.2015 in the business premises of the petitioner and the residences of the Directors of the petitioner and the consequential summons, proceedings under section 131 of the Income Tax Act culminating in the visit of the 2nd and 3rd respondents to the residences of the Directors of the petitioner on 15.06.2016 to issue summons under Section 131 of the Income Tax Act and take evidence as illegal, malafide, abuse of powers, ultra vires the Income Tax Act, and without jurisdiction. .....

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of the Act is without authority of law; that the respondents 3 and 4 are not the Assessing Officer of the Directors and Consultant of the petitioner and that there is no assessment proceedings of the Directors and Consultant of the petitioner pending before the third and fourth respondents and issuance of repeated summons under Section 131 of the Income Tax Act on the Directors and Consultant of the petitioner as 'assessee' is without jurisdiction and hence, all the summons proceedings .....

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munications emanating from the department, the copies of the statements have not been furnished. 5. The learned Standing counsel appearing for the respondent Department accepted and sought time to get instructions with regard to the supply of the copies of the statements recorded from the Directors/Employees and Chartered Accountants of the petitioner company and the following order was passed:- The learned counsel for the petitioner submitted that pursuant to the Survey conducted, certain state .....

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ctor will verify and provide details by 09.05.2016. However, the same has not been provided inspite of telephonic reminders. It was further stated that the details to be submitted as per sworn statement recorded on 04.05.2016, shall be furnished immediately, on receipt of the letter dated 24.05.2016, in order to complete the proceedings at the earliest, failing which necessary proceedings would be initiated as per the Income Tax Act. 2. It is submitted by the learned counsel for the petitioner t .....

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dated 24.05.2016, it appears that the third respondent had not specifically dealt with the request made by the Director to furnish copy of the sworn statement nor there is any specific refusal to furnish the same. By communication dated 08.06.2016, addressed to the petitioner's company, the third respondent has stated that the sworn statement of the Directors as well as the employees of the petitioner company taken during the course of survey proceedings will be provided as and when it is pr .....

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een issued under Section 131 of the Act and the petitioner and other Directors have been submitting written representations to the summons and on 15.6.2016, the third respondent has recorded a statement under Section 131 of the Act, in the residence of the Director Mr.CBN Reddy. Thereafter, summons have been issued under Section 131 of the Act, calling upon the said persons to personally attend the camp office, which is the residence of one of the Directors of the petitioner company. 4. The lear .....

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the Act, till the matter is heard and decided. List the matter on 27.6.2016. 6. When the matter was taken up on 15.07.2015, the learned Additional Solicitor General of India raised a preliminary objection with regard to the request for copies of the statements. It is submitted that the petitioner herein is a company incorporated under the Companies Act, the Director, who has sworn to the affidavit in this Writ Petition has not given any statement, the persons, who have given statements have not .....

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ing perusal of the statements given by other persons, cannot be entertained, as it would hamper the investigation. Further, it is submitted that in terms of Section 207 Cr.P.C., the copies of the statements would be furnished only when the charge sheet is laid applying the said analogy as the investigation is in process, the request made by the petitioner in their letter dated 10.05.2016, cannot be acceded to. Further, it is submitted that in taxation matters, the Courts will be slow to interfer .....

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ther, in terms of the second schedule to the Right to Information Act, the provisions of the said Act, would not apply to the Directorate General of Income Tax (Investigation). 7. While answering the preliminary objection, the learned counsel for the petitioner submitted that the investigation commenced by the department is against individuals, who are connected with the company, all notices which have been issued by the respondents 3 and 4 contain the same file number and the person, who is tar .....

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ent cannot make a roving enquiry in respect of other information. With regard to the contention that even under the RTI Act, information cannot be given, the said submission is not tenable, since on first principle, the petitioner is entitled to the copies, as it is the petitioner's own case. After referring to the replies given by the Department, dated 24.05.2016 and 08.06.2016, it is submitted that the fourth respondent has conveniently omitted to refer to the request made by the petitione .....

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tted that the relief sought for in the main Writ Petition is for a larger relief to declare the entire survey conducted by the officers under Section 133A of the Act in the business premises of the petitioner and the residences of the Director is illegal and for considering such a prayer, counter should have been filed by the Department. 8. After considering the submissions of the learned counsels appearing for the parties and perusing the materials placed on record, the following undisputed fac .....

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ollows:- Name Date of Statements R.Balachandran 01st December 2015 Vishakh Rao 01st December 2015 S.Mohan 01st December 2015 M.Rajesh 01st December 2015 C.B.N.Reddy 15th December 2015 S.Bhaskararaman 15th December 2015 04th May 2016 9. It is not in dispute that none of the persons, who have given statements as mentioned above, have approached this Court for furnishing the copies of the statements. The petitioner, the company represented by one of its Directors, who has not given a statements, no .....

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the petitioner is entitled to look into those statements is a flawed submission, especially when, investigation is going on and each individual has given statements. Therefore, acceding to the prayer sought for by the petitioner would definitely hamper the investigation. 10. The learned counsel for the petitioner submitted that the petitioner has sought for a larger relief wherein they seek for quashing the entire survey which commenced in December 2015. The survey was conducted in various plac .....

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