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| The Tax Publishers2020 TaxPub(DT) 0289 (Chhattisgarh-HC) : (2020) 423 ITR 0047 : (2020) 316 CTR 0580 INCOME TAX ACT, 1961
Section 153A
Where assessee had omitted or failed to produce books of accounts or other documents and assessee person was in possession of any money, bullion, jewellery or other valuable article which represented either wholly or partly income or property which had not been or would not be disclosed, therefore, there was no illegality or infirmity in entire process based on which the warrant under section 132 and notice under section 153A was issued against assessee.
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Search and seizure - Validity - Sufficient information available in the record of department forming basis of reason to believe -
Petitioner pleaded for declaring the search of his premises as illegal and void ab initio and for return of money, bullions or other valuable items seized from his premises. Challenge was on the ground that there was no basis of issuance of search warrant under section 132 because 'reason to believe' did not exist for issuance of search warrant. It was also argued that there was no information in possession of AO forming the basis for reason to believe. It was also argued that issuance of notice under section 153A to a person against whom search was initiated under section 132 would arise when the search is legal, but the same not being the case here, section 153A had no application. Held: This Court was satisfied that authority was possessed of information on the basis of which a reasonable belief was founded that assessee had omitted or failed to produce books of accounts or other documents and that such person was 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 was further satisfied that before issuance of warrant and notice under section 153A authority applied its mind to the material and the formation of opinion was honest and bona fide and further that it is not based on any extraneous or irrelevant material. This Court did not find any illegality or infirmity in entire process based on which the warrant under section 132 and the notice under section 153A was issued against assessee.
REFERRED : Director General of Income Tax (Investigation) & Ors. v. Spacewood Furnishers Pvt. Ltd. & Ors. (2015) 12 SCC 179 : (2015) 374 ITR 595 (SC) : 2015 TaxPub(DT) 2158 (SC) Pratap Singh (Dr.) v. Director of Enforcement Foreign Exchange Regulation Act 1985 (3) SCC 72 Pooran Mal v. Director of Inspection (Investigation) 1974 (1) SCC 345 : 1974 TaxPub(DT) 0353 (SC) ITO v. Seth Brothers & Ors. 1969 (2) SCC 324 : 1969 TaxPub(DT) 0382 (SC) CCT & Ors. v. Ramkishan Shrikishan Jhaver & Ors. (1967) 66 ITR 664 (SC) : 1967 TaxPub(DT) 0379 (SC)
FAVOUR : Against the assessee
A.Y. :
IN THE CHHATTISGARH HIGH COURT
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