https://www.taxtmi.com/caselaws?id=760061 The Telangana HC set aside a search and seizure operation conducted under Section 132 of the Income Tax Act, finding the satisfaction note inadequate. The court held that the revenue authority lacked cogent incriminating material to form reasonable belief, relying instead on mere suspicion. The satisfaction note mentioned discrete enquiry but contained no supporting material. Despite petitioners having tax compliance certificates, authorities assumed non-disclosure without proper basis. Following SC precedents in Spacewood Furnishers and Laljibhai Kanjibhai Mandalia, the court emphasized that reasons to believe cannot equal reasons to suspect. The seized amount was ordered to be returned immediately, though future proceedings remain permissible. en-us Wed, 26 Jun 2024 00:00:00 +0530 Mon, 14 Oct 2024 09:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760061 The Telangana HC set aside a search and seizure operation conducted under Section 132 of the Income Tax Act, finding the satisfaction note inadequate. The court held that the revenue authority lacked cogent incriminating material to form reasonable belief, relying instead on mere suspicion. The satisfaction note mentioned discrete enquiry but contained no supporting material. Despite petitioners having tax compliance certificates, authorities assumed non-disclosure without proper basis. Following SC precedents in Spacewood Furnishers and Laljibhai Kanjibhai Mandalia, the court emphasized that reasons to believe cannot equal reasons to suspect. The seized amount was ordered to be returned immediately, though future proceedings remain permissible. Case-Laws Income Tax Wed, 26 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760061