Income Declaration Scheme exclusion barred challenge to search proceedings where Section 132 action had already begun.

An express exclusion in the Income Declaration Scheme, 2016 barred its use where search proceedings under Section 132 of the Income-tax Act, 1961 had been conducted or related notices were pending. Because the petitioner's premises were searched during the scheme period and no declaration was made before the search, the scheme was unavailable. The scheme could not override or suspend the statutory operation of the Income-tax Act during its currency. The search and consequential proceedings were therefore not liable to be quashed, and the writ petition failed.

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Issues: Whether the petitioner was entitled to quashing of search proceedings and consequential proceedings on the ground that the Income Declaration Scheme, 2016 was operative during the search period and should have protected the petitioner from action under the Income-tax Act, 1961.

Analysis: The Scheme of 2016 contained an express exclusion in paragraph 196(e) for undisclosed income where search proceedings under Section 132 of the Income-tax Act, 1961 had been conducted and also in cases where notices under the specified provisions had been issued or were pending. The petitioner's premises were searched during the currency of the scheme, but the declaration under the scheme was not made before the search. The scheme was therefore unavailable to the petitioner. The scheme could not override the statutory provisions of the Income-tax Act or keep them in abeyance during its operation.

Conclusion: The petitioner was not entitled to the benefit of the Income Declaration Scheme, 2016, and the search and subsequent proceedings under the Income-tax Act, 1961 were not liable to be quashed.

Final Conclusion: The writ petition failed, and the impugned search and consequential proceedings were sustained.

Ratio Decidendi: Where a statutory scheme expressly excludes cases involving search proceedings under Section 132 of the Income-tax Act, 1961, the scheme cannot be invoked to invalidate or suspend action taken under the Act during its currency.

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