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TMI Blog2023 (1) TMI 1229X X X X Extracts X X X X X X X X Extracts X X X X ..... nly. Thus, the Notification relied upon by the revenue deals with extension of jurisdiction qua territory alone, and not with regard to an assessee . The Notification is in furtherance of the statutory sanction under the proviso to Section 132 and Section 132(1A), to enable officers in the Department to enter and search places located in areas other than those coming under the jurisdiction of the assessing officer holding jurisdiction over the assessee searched. Thus it is our considered view, based upon the scheme of the Act and the specific statutory provisions, that it is statutorily enjoined for a search to be conducted by the jurisdictional officers of that assessee only. The sole exceptions to this rule are in regard to locations that fall within the jurisdiction of a different officer, subject to satisfaction of, and compliance with, the requisite conditions, under the proviso to Section 132 and Section 132(1A). As called for the records of the search and verified that the warrant of authorisation dated 29.08.2017 in regard to the search conducted on 30.08.2017 has been issued in Form 45, in the name of the Petitioner, by R4 Deputy Director of Income Tax (Inv), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the country. It is pursuant to such authorisation that the respondent officers situated in Bangalore have entered upon, and conducted search and seizure in the premises of the petitioner. 6. Having heard the rival contentions of learned counsel, my decision is as follows. Section 132 to the extent to which it is relevant to decide this matter is extracted below: Search and seizure. 132. (1) Where the Principal Director General or Director General or Principal Director or Director or the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or Additional Director or Additional Commissioner or Joint Director or Joint Commissioner in consequence of information in his possession, has reason to believe that- (a) any person to whom a summons under sub-section (1) of section 37 of the Indian Income-tax Act, 1922 (11 of 1922), or under sub-section (1) of section 131 of this Act, or a notice under sub-section (4) of section 22 of the Indian Income-tax Act, 1922, or under sub-section (1) of section 142 of this Act was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iib) require any person who is found to be in possession or control of any books of account or other documents maintained in the form of electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000), to afford the authorised officer the necessary facility to inspect such books of account or other documents; (iii) seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing found as a result of such search: Provided that bullion, jewellery or other valuable article or thing, being stock-in-trade of the business, found as a result of such search shall not be seized but the authorised officer shall make a note or inventory of such stock-in-trade of the business; (iv) place marks of identification on any books of account or other documents or make or cause to be made extracts or copies therefrom; (v) make a note or an inventory of any such money, bullion, jewellery or other valuable article or thing : Provided that where any building, place, vessel, vehicle or aircraft referred to in clause (i) is within the area of jurisdiction of any Principa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) Income-tax authorities shall exercise all or any of the powers and perform all or any of the functions conferred on or, as the case may be, assigned to such authorities by or under this Act in accordance with such directions as the Board may issue for the exercise of the powers and performance of the functions by all or any of those authorities. Explanation For the removal of doubts, it is hereby declared that any income-tax authority, being an authority higher in rank, may, if so directed by the board, exercise the powers and perform the functions of the income-tax authority lower in rank and any such direction issued by the Board shall be deemed to be a direction issued under sub-section (1). (2) The directions of the Board under sub-section (1) may authorise any other income-tax authority to issue orders in writing for the exercise of the powers and performance of the functions by all or any of the other income-tax authorities who are subordinate to it. (3) In issuing the directions or orders referred to in sub-sections (1) and (2), the Board or other income-tax authority authorised by it may have regard to any one or more of the following criteria, namely : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained in Section 120 which carves out an exception to the remaining portions of Section 132. 16. Likewise, Section 132(1A) of the Act relates to a situation where the officials have received information in the course of the search proceedings in regard to additional locations not covered under the main warrant of authorization, to which the search must be extended. 17. Sub-Section (1A) permits, in such a situation, the Principal Chief Commissioner/ Chief Commissioner/ Principal Commissioner/Commissioner to authorize the officer concerned who has been initially authorized by Principal Director General / Director General / Principal Director/ Director General of any other Principal Chief Commissioner/ Chief Commissioner/ Principal Commissioner/Commissioner or Additional Director or Additional Commissioner or Joint Director or Joint Commissioner, to take necessary action under the provisions of Section 132 in respect of those additional locations as well. 18. This sub-Section also uses the phrase notwithstanding anything contained in Section 120 indicating that such authorization can be issued even to an officer who is not a jurisdictional officer of the assessee conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r their control. 25. Since the Notification is extensive, I select two instances, of Directors General of Income Tax, in Tamil Nadu and Gujarat, as illustrative of this point: Sr. No. Director General of Income-tax (Investigation) Head Quarters Principal Director/Director of Income-tax (Investigation) Head quarters Territorial areas 1 Director General of Income-tax (Investigation) Tamil Nadu and Puducherry Chennai Principal Director/Director of Income-tax (Investigation), Chennai Chennai Areas within the limits of the state of Tamil Nadu and Union territory of Puducherry (including Karaikal but excluding Mahe and Yanam) 2 Director General of Income-tax (Investigation) Gujarat Ahmedabad Principal Director/Director of Income-tax (Investigation), Ahmedabad Ahmedabad Areas within the limits of the: (a) Union territory of Diu; an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dule annexed to this notification (hereinafter referred to as the said schedule ) or the Principal Director / Director of Income-tax specified in column (4) of the said Schedule shall exercise powers under Part C (Powers) of Chapter XIII and corresponding provisions of Chapter XXI (Penalties imposable), Chapter XXII (Offences and Prosecutions) and other provisions incidental thereto of the said Act and perform the functions relating thereto in respect of the territorial areas of whole of India; (ii) directs that the Directors General of Income-tax specified in column (2) of the said Schedule or the Principal Director / Director of Income-tax specified in column (4) of the said Schedule shall exercise powers under all other provisions of the said Act, [other than the provisions mentioned in (i) above], and perform the functions relating thereto in respect of the territorial areas specified in the corresponding entries in column (6) of the said Schedule; (iii) authorises the Director General of Income-tax specified in column (2) or the Principal Director/Director of Income-tax specified in column (4) of the said Schedule to issue orders in writing for exercise of ..... 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