TMI Blog2020 (1) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter proposed issuance of warrant of authorisation u/s 132 in respect of premises of Shri Amolak Singh Bhatia and family, Shri Surjeet Singh Bhatia and family, Shri Manjeet Singh, Shri Subhash Sharma, Shri Santosh Kumar, Shri Gurmeet Singh Bhatia and family and Shri Manjeet Singh at different locations. This Court is satisfied that the authority was possessed of information on the basis of which a reasonable belief was founded that the petitioner has omitted or failed to produce books of accounts or other documents and that such person is in possession of any money, bullion, jewellery or other valuable article which represents either wholly or partly income or property which has not been or would not be disclosed. This Court is further satisfied that before issuance of warrant and the notice under Section 153A of the IT Act the authority applied its mind to the material and the formation of opinion is honest and bona fide and further that it is not based on any extraneous or irrelevant material. Having examined the papers, this Court is also satisfied that the reasons for formation of belief are relevant to the subject matter at hand and since this Court is not required t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n accordance with law and there can be no judicial review of the sufficiency of the material forming the reason to believe. It is also argued that the information were germane to the subject in hand, therefore, no interference is called for in this petition. 4. In Spacewood Furnishers Private Limited (supra) the High Court had quashed the notice under Section 153A of the IT Act by interfering with the warrant of authorisation for search issued under Section 132 of the IT Act. On appeal by the Revenue before the Supreme Court the High Court s judgment has been set aside. The Supreme Court referred to its earlier decisions rendered in Income-Tax Officer, Special Investigation Circle- B, Meerut v Messrs Seth Brothers and Others Etc. 1969 (2) SCC 324, Pooran Mal v The Director of Inspection (Investigation), New Delhi and Others 1974 (1) SCC 345, and Dr. Pratap Singh and Another v Director of Enforcement, Foreign Exchange Regulation Act and Others 1985 (3) SCC 72 and thereafter, summarise the legal position in paras 8 8.1 to 8.6, which are reproduced hereunder : 8. The principles that can be deduced from the aforesaid decisions of this Court which continue to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a legal challenge being made to the satisfaction reached. Reasons enable a proper judicial assessment of the decision taken by the Revenue. However, the above, by itself, would not confer in the Assessee a right of inspection of the documents or to a communication of the reasons for the belief at the stage of issuing of the authorization. Any such view would be counter productive of the entire exercise contemplated by Section 132 of the Act. It is only at the stage of commencement of the assessment proceedings after completion of the search and seizure, if any, that the requisite material may have to be disclosed to the Assessee. 22. At this stage we would like to say that the High Court had committed a serious error in reproducing in great details the contents of the satisfaction note(s) containing the reasons for the satisfaction arrived at by the authorities under the Act. We have already indicated the time and stage at which the reasons recorded may be required to be brought to the notice of the Assessee. In the light of the above, we cannot approve of the aforesaid part of the exercise undertaken by the High Court which we will understand to be highly premature; h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the said order, the Department produced the records in sealed covers. 7. On perusal of the said record, it is manifest that Shri Muneesh Kumar, DDIT (Inv) II, Raipur, has mentioned that Shri Subhash Sharma of Raipur is known to be a close associate of Amolak Singh Bhatia group and therefore, he is proposed to be included in the search. Similar observation in respect of other liquor contractors of the State is also mentioned in the note sheet concluding that in the light of above, on the basis of information gathered during discrete enquiries, it is apparent that the Shri Amolak Singh group and his associates and Shri Manjeet Singh Bhatia and associates are concealing their true income and are in possession of substantial amount of money, bullion, jewellery and other valuable assets representing income which has not been and shall not be disclosed for the purposes of taxation. The officer thereafter proposed issuance of warrant of authorisation under Section 132 of the IT Act in respect of premises of Shri Amolak Singh Bhatia and family, Shri Surjeet Singh Bhatia and family, Shri Manjeet Singh, Shri Subhash Sharma, Shri Santosh Kumar, Shri Gurmeet Singh Bhati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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