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1. Maintainability of the suit under section 293 of the Income-tax Act, 1961. Detailed Analysis: The judgment by R. K. Patra of the High Court of Orissa pertains to a revision filed by the Commissioner of Income-tax and the Union of India challenging the decision of the trial judge in a suit regarding the partition of gold ornaments. The petitioners contended that the suit was not maintainable under section 293 of the Income-tax Act, 1961. The suit was initiated by the daughter of a deceased individual against whom income tax officers had conducted a search and seizure operation resulting in the confiscation of the gold ornaments in question. The petitioners argued that since the assessment proceedings were ongoing, the suit was barred under section 293 of the Act. The court examined the provisions of section 293 of the Income-tax Act, which prohibits suits to set aside or modify any proceedings or orders made under the Act. The court referenced legal principles from previous cases to determine the exclusion of civil court jurisdiction. It highlighted that exclusion of civil court jurisdiction must be explicitly expressed or clearly implied in the statute. The court also referred to the principles laid down in Dhulabhai v. State of Madhya Pradesh regarding the exclusion of civil court jurisdiction based on statutory provisions and remedies provided. The court analyzed the order passed under section 132(5) of the Income-tax Act, which authorized the seizure of assets during a search operation. It noted that the suit was not aimed at setting aside or modifying this order. The court emphasized that the order under section 132(5) did not provide finality and could be varied or modified by higher authorities. The court concluded that the relief sought by the plaintiff in the suit, regarding the partition of gold ornaments, could not be granted by the statutory authorities under the Act. Referring to a similar case, the court held that a third party could file a suit against the government for a declaration of entitlement to income or properties. Consequently, the court dismissed the revision, upholding the trial judge's decision to allow the suit to proceed. In summary, the judgment extensively analyzed the provisions of section 293 of the Income-tax Act, the principles governing civil court jurisdiction, and the specific circumstances of the case to determine the maintainability of the suit seeking partition of gold ornaments seized during an income tax search operation.
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