S.132:Search and seizure-Warrant of authorization-Satisfaction

S.132:Search and seizure-Warrant of authorization-Satisfaction-Authority entertaining belief that assessee

secreted certain documents relevant for purpose of investigation of matter relating to evasion of tax-Assessee

cannot stall proceedings on ground of lack of jurisdiction to issue warrant-Assessee to raise all grounds

available in his defense during enquiry and subsequent proceedings. ( Constitution of India, art. 226.)

The assessee challenged the action under section 132 of the Act by way of writ before the High Court.The Court

dismissed the petition by observing that there were materials available before the authority concerned, for the formation of his belief to issue such a warrant. Further, the authority had also reason to believe that such documents and things would not be produced by the persons concerned, in the normal course, to enable the Department to conduct necessary inquiries in the matter. Therefore, it was premature on the part of the assessees to stall further proceedings relating to the allegations of evasion of payment of tax by the assessees, by raising the issues relating to the jurisdiction of the Department to issue the search warrants. Of course, it would be open to the assessees to defend themselves by showing, at the appropriate stage of the proceedings, that they were not liable to pay the tax, as assessed by the authorities of the Department. The belief of the authorities that the assessees had secreted certain documents relevant for the purpose of investigation of the matter relating to the evasion of tax by the assessees, was based on materials available before the authorities. When serious allegations of tax evasion by the assessees, to the tune of several lakhs of rupees, have been made, it would not be appropriate for the court to scuttle the process by placing undue emphasis on the hyper technical pleas put forth on behalf of the assessees, with regard to the procedural formalities in the issuance of the search warrants. (Block period 1-4-1996 to 12-9-2002)

P.G. Viswanathan (Dr.)v. DIT(Inv. (2013) 351 ITR 217(Mad.) (High Court)

V.Muthulakshmiv.DIT (Inv.) (2013) 351 ITR 217(Mad.) (High Court)

K.Viaswanthan alias Kumar v.DIT (Inv.) (2013) 351 ITR 217(Mad.) (High Court)

Aruna Viswanthan(Dr.)v.DIT (Inv.) (2013) 351 ITR 217(Mad.) (High Court)

Anjana Viswanthan (Dr.)v.DIT (Inv.) (2013) 351 ITR 217(Mad.) (High Court)

Vikram Viswanathn(Dr.) v.DIT (Inv.) (2013) 351 ITR 217(Mad.) (High Court)