Disputed electronic evidence in tax proceedings led to independent enquiry and interim protection against coercive recovery action.

The authenticity of an electronic communication used in income-tax proceedings was seriously disputed, with rival allegations of fabrication and falsehood. Faced with that contest and the absence of a satisfactory departmental enquiry before such allegations were made, the Court directed an independent enquiry by the CBI. Pending that enquiry, the petitioner was protected from coercive recovery action, preserving procedural fairness while the electronic record remained under investigation.

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Issues: Whether the disputed e-mail communication relied upon by the petitioner required a forensic inquiry, and whether interim protection against coercive recovery action should be granted.

Analysis: The dispute centred on the authenticity of the electronic communication said to extend the time for reply to the notice under the income-tax assessment proceedings. The Court noted the serious contest between the parties on whether the e-mail originated from the income-tax department's system or was fabricated, and considered the opposing allegations of forgery and falsehood. In view of the nature of the dispute and the absence of a satisfactory departmental enquiry before levelling serious allegations, the Court directed an independent enquiry by the Central Bureau of Investigation. Pending that enquiry, the Court also protected the petitioner against coercive action.

Conclusion: The issue of authenticity was sent for CBI enquiry, and interim protection was granted to the petitioner against coercive steps.

Final Conclusion: The order afforded interim relief to the petitioner by securing an independent enquiry into the disputed electronic record and by restraining coercive action until further orders.

Ratio Decidendi: Where the authenticity of an electronic communication central to tax proceedings is seriously disputed, the Court may direct an independent investigation and grant interim protection to preserve fairness and prevent coercive prejudice.

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