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TMI Blog2023 (8) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... emises under section 132(1) of the Income-tax Act, 1961 (the Act). Pursuant to the said search action a block assessment order dated 31.12.1999 was passed under section 158BC of the Act. Further penalty has also been levied under section 158BFA of the Act and prosecution proceeding has been initiated on the basis of such block assessment order and a complaint filed before the Court of Additional Chief Metropolitan Magistrate for offences allegedly committed under section 276C and 277 read with section 278B of the Act. 2. The assessee had objected to the passing of the block assessment order by filing an additional ground in the appeal filed by it before the CIT(A) from the block assessment order. In the said additional ground raised on 20. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue's writ petition, the Assessee has filed writ petition being No. 745 of 2009 challenging the validity of the search action and seeking quashing and setting aside of the consequent block assessment order dated 31.12.1999 passed under section 158BC of the Act, order dated 04.10.2001 levying penalty under section 158BFA and also the complaint being Criminal Case No.28/SW/2004 filed by the Revenue before the 4th Court of the Additional Chief Metropolitan Magistrate at Esplanade Mumbai, which is now pending as renumbered Criminal Case No. 28/SW/2013 before 38th Court of Additional Chief Metropolitan Magistrate. 4. On 30.06.2023, this Court, after hearing both the parties, was pleased to direct the Revenue to file, in a sealed envelope, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e traced despite efforts made to locate the same. It may also be noted that right since the date of the fire in 2018 till today nowhere has the Revenue adverted to this incident on any of the earlier hearings. 6. It is settled law that if no reason was ascribed for search and seizure action taken under Section 132 of the Act it would be illegal. The exercise of power under Section 132 of the Act is a serious invasion upon the rights, privacy and freedom of the tax-payer. The courts have held that this power must be exercised strictly in accordance with law and only for the purposes for which law authorizes it to be exercised. The courts, after scrutiny, can decide on the correctness of the opinion formed by the Income Tax Officer where the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to examine the reasons for the formation of the belief, though not the sufficiency or adequacy thereof. In other words, the Court will examine whether the reasons recorded are actuated by mala fides or on a mere pretence and that no extraneous or irrelevant material has been considered. Such reasons forming part of the satisfaction note are to satisfy the judicial conscience of the Court. (Principal Director of Income-tax (investigation) Vs. Laljibhai Kanjibhai Mandalia) (2022) 140 taxmann.com 282 (SC). 7. In view of the above, since the satisfaction note which formed the very basis for issuance and authorisation of the search warrant under section 132(1) of the Act has not been made available in spite of a specific direction given b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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