Echjay Industries Pvt Ltd Vs Rajendra Director of Income Tax-II (Investigations) (Bombay High Court)
The Bombay High Court dealt with writ petitions challenging search and seizure actions conducted under Section 132 of the Income Tax Act, 1961. The petitions arose from authorisations issued on 7 July 2008 by the competent income tax authority for searches at the business and residential premises of the petitioners. The petitioners contended that the search authorisations were unconstitutional, without jurisdiction, and issued without satisfying the conditions prescribed under Section 132(1) of the Act.
Read SC Judgment in this case: SC Refuses to Disturb HC Decision Quashing Income Tax Search Over Invalid Satisfaction Note
The petitioners argued that they had regularly complied with tax proceedings, assessments had consistently been completed under scrutiny, and no concealment penalties had ever been imposed. They submitted that no summons or notices had earlier been issued to them and therefore clauses (a) and (b) of Section 132(1) were not attracted. They further contended that there was no information justifying a belief that they possessed undisclosed income or assets under clause (c). The petitioners also challenged the seizure of cash, jewellery, and documents, asserting that these were already reflected in their books and wealth tax records.
