Order passed u/s 220(6) of the Income Tax Act must be speaking order

V V Titanium Pigments Private Limited Vs ACIT (Madras High Court)

Madras High Court held that any order made under Section 220 (6) of the Income Tax must be a speaking order. Accordingly, impugned order set aside as being cryptic and non-speaking.

Facts-

Aa search was carried out on 25.10.2018 in the factory of the Petitioner. The same was temporarily concluded on 28.10.2018 with Prohibitory Orders. In the panchnama drawn at the end of search, it was mentioned that the warrant is in the names of various individuals & business entities including the petitioner’s name.

There are no individual warrants of authorization and therefore the search is not in accordance with law as mandated in Section 132 of the Income Tax Act, 1961. It is further stated that an assessment u/s.153A of the Income Tax Act is permissible only when the search is valid in terms of the Income Tax Act, 1961.

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