Case Law Details
Anil Jain Vs Principal Director General of Income Tax (Inv) (Madras High Court)
Petitioner is an assessee on the file of DCIT, Chennai. On 02.08.2017 there was a search u/s 132 in the premises of one D.K.Shivakumar. The premises of the petitioner was searched by the ADIT & the DDIT(Inv.), Bangalore. The warrant of authorization was issued by the latter in the name of the petitioner. Writ of Declaration was sought declaring the search conducted at his residence and office at Chennai and all other subsequent proceedings as illegal and contrary to the provisions of law.
Assesee contended that the operation of Section 132 is subservient & subject to the provisions of Section 120 that deal with jurisdiction of the IT authorities. Thus, the initiation and conduct of the search in the residential and business of the assessee by the IT authorities at Bangalore in the face of the admitted position that he falls under the jurisdiction of the officers at Chennai, is illegal and contrary to the Act.
Dept completely relied upon Notification No. S.O.2914(E)(69/2014(F.No.187/37/2014), dt 13.11.2014. Revenue contended that the authorities listed in the aforesaid Notification have been given All-India jurisdiction to enter and search assessees, situated anywhere in the country and pursuant to such authorisation that officers situated in Bangalore have entered upon, and conducted search and seizure in the premises of the petitioner.
The High Court noted that Sec 120 states that IT authorities shall exercise all or any of the powers or functions conferred upon them in accordance with the directions of the Board. Such directions are to be issued bearing in mind the following criteria being a) territorial area, b) persons or classes of persons, c) incomes or classes of income and d) cases or classes of cases. The first requirement is thus of territoriality.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
