Case Law Details
Muhammed C K Vs ACIT (Kerala High Court)
The case of Muhammed C K Vs ACIT before the Kerala High Court revolves around the validity of notices issued under Section 148 of the Income Tax Act, 1961. The petitioner challenges the issuance of these notices, arguing that the prescribed procedure under Section 148A has not been followed. The contention arises from the invocation of Section 132A and its relevance in the case.
Analysis: The petitioner’s counsel argues that Section 148A mandates an inquiry providing opportunity to the assessee before issuing notices. However, the Income Tax Department defends the notices, citing the invocation of Section 132A. The dispute centers on whether the requisition under Section 132A adequately substitutes the procedure under Section 148A.
The petitioner contests that the funds seized were never requisitioned under Section 132A, as they were recovered by the police and later released by the court. Conversely, the department maintains that the requisition was made to the police, and subsequent legal proceedings were in accordance with the law.
The High Court’s analysis hinges on the interpretation of relevant legal provisions. It determines that while the notices were issued without following the procedure under Section 148A, they are not illegal due to the applicability of the 1st proviso to Section 148A. The court finds that the situation falls under Section 132A, exempting it from the requirements of Section 148A.
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