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TMI Blog2022 (4) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... artly or wholly the income of the assessee mentioned in Table-1 and accordingly, search and seizure action requires to be carried out. Though the use of the words 'reason to suspect' is found in the said Confidential Note produced before the Court, a perusal of the Note and taking note of the reference to particular transactions, the discrepancy between the income declared and the profits from the projects which is detailed in the material would clearly amount to material being available which would be sufficient for constituting 'reasons to believe' leading to exercise of power under Section 132. It cannot be stated that the exercise of power invoking Section 132 in the present case in light of the material produced before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Annexure-B series and the Demand Notices at Annexure-C series. 2. The Learned Senior Counsel appearing on behalf of the petitioner would submit that the action undertaken by the Authority pursuant to Section 132 of the Act unless fulfills the legal requirement of 'reasons to believe' by the appropriate Authority is liable to be set aside. 3. It is further submitted that the power under Section 132 of the IT Act being a drastic power, same has to be exercised sparingly and accordingly, the Court has to scrutinize the material and arrive at a conclusion while balancing the individual interest of the petitioner as well as power of the Department under Section 132 of the Act. It is further contended that the material available ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e sufficient to arrive at a conclusion justifying exercising power under Section 132. It is also contended that the Authority could have initiated proceedings for re-opening of the proceedings under Section 148 instead of taking recourse to Section 132 and subsequently invoking Section 153(a). 5. Learned counsel Sri. K.V. Aravind appearing for the Revenue on the other hand would contend that it is a settled position that the Court cannot enter into the sufficiency of, reasoning and the material available including satisfaction note which would legally justify invocation of power under Section 132. Reliance is placed on the judgment of the Patna High Court in the case of Ajay Kumar Singh Vs. Director General of Investigation, Bihar (202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the field enquiries revealed that the assessee had collected cash against sale agreements and uses the amount as unaccounted investment in the form of advance for property purchase. There are specific details relating to the amount paid. It is specifically concluded that in light of the facts stated including the details of the project that the assessee would be in possession of money/bullion/ jewellery/other valuable article or thing which represents partly or wholly the income of the assessee mentioned in Table-1 and accordingly, search and seizure action requires to be carried out. Though the use of the words 'reason to suspect' is found in the said Confidential Note produced before the Court, a perusal of the Note and taking n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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