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Petition under articles 226 and 227 against Income-tax Department and an individual for tax evasion by builders in Indore city. Analysis: The petitioner, an industrial consultant, filed a public interest litigation (P.I.L.) against the Income-tax Department and an individual builder for alleged tax evasion by builders in Indore city. The petitioner claimed that builders were evading taxes through illegal means, causing significant losses to the exchequer. The court clarified that it cannot conduct investigative inquiries in public interest litigations and overstep its powers conferred under articles 226 and 227 of the Constitution of India. The Income-tax Act already provides authorities with extensive powers to take action against tax evaders, including conducting search and seizure operations under Chapter XIII. The discretion to take action against defaulting taxpayers lies with the authorities, subject to authorization by the Commissioner of Income-tax of the relevant area. The court noted that the petitioner sought a general direction against all builders in Indore city without specific details, making it impermissible in law. As the petitioner failed to provide specific information, the departmental authorities could not be faulted for not taking action. The petitioner's allegations seemed directed only at one specific builder for tax evasion. Consequently, the court directed respondents to investigate the case of the specific builder mentioned in the petition as per the provisions of the Income-tax Act. If tax evasion is found for any assessment year, appropriate action should be taken within six months, in accordance with the relevant provisions and rules. The court emphasized that its observations should not be construed as deciding any issue in favor of or against any party, and the authorities should conduct investigations independently. In conclusion, the petition was disposed of, with the security amount deposited to be refunded to the petitioner. The court's decision highlighted the limitations of its role in public interest litigations and reiterated the powers vested in the Income-tax authorities to address tax evasion issues effectively.
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