TaxTMI 
TaxTMI 
2024 (5) TMI 609
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....ard finally by consent of learned Counsel for the respective parties. (2) The Petition questions the search and seizure carried out at the premises of the Petitioners from 01/11/2023 to 03/11/2023. The said search and seizure was in pursuance to the provisions of Section 132 of the Income Tax Act, 1961 (hereinafter referred to as "the said Act"). (3) Mr. Manohar, learned Senior Counsel for the Petitioners, upon instructions, while relying upon the language of Section 132 of the said Act, submits that such a search and seizure has necessarily to be in consequence of the information in possession of the Authority, which provides him a reason to believe that any of the actions, as indicated in Section 132 (1)(a) to (c) of the said Act, a....
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....Bank, Branch at Nagpur had disclosed that it contained jewellery and valuables with gross weight of 6650.67 grams and silver items with gross weight of 15831.455 grams which were cumulatively valued at Rs. 3,91,00,297/-, out of which, only valuables amounting to Rs. 61,85,545/- with gross weight of 988.58 grams were seized. He submits that there was sufficient information available with the Respondents for the search and seizure which is borne out by what has been seized as indicated above. He also relies upon Principal Director of Income Tax vs. Laljibhai Kanjibai Mandalia, 2022 SCC Online SC 872 in which the principles regarding interference in the search and seizure under Section 132 of the said Act have been laid down and submits that t....
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.... to produce, or cause to be produced, such books of account or other documents as required by such summons or notice, or (b) any person to whom a summons or notice as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, any books of account or other documents which will be useful for, or relevant to, any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act, or (c) any person is in possession of any money, bullion, jewellery or other valuable article or thing and such money, bullion, jewellery or other valuable article or thing represents either wholly or partly income or property which has not been, or would not be, disclosed for the purposes of the Indi....
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....a warrant of authorisation had been repealed on and from 1-10-1975 the reasons for the belief found should be recorded. 8.5 The reasons, however, need not be communicated to the person against whom the warrant is issued at that stage. 8.6 Such reasons, however, may have to be placed before the Court in the event of a challenge to formation of the belief of the authorised official in which event the court (exercising jurisdiction under Article 226) would be entitled to examine the relevance of the reasons for the formation of the belief though not the sufficiency or adequacy thereof." (7) Laljibhai Mandalia (supra), after considering Spacewood Furnishers (supra), culls out the principle for interference in Paragraph No. ....
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....hough 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; vi) Such reasons forming part of the satisfaction note are to satisfy the judicial consciousness of the Court and any part of such satisfaction note is not to be made part of the order; vii) The question as to whether such reasons are adequate or not is not a matter for the Court to review in a writ petition. The sufficiency of the grounds which induced the competent authority to act is not a justiciable issue; viii) The relevance of the reasons for the formation of the belief is to be t....
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.... for formation of the belief, though not the sufficiency or adequacy thereof. (9) Mr. Parchure, learned Counsel for the Respondents has been kind enough to place the original file of the Department before us and having perused the same in extenso, we are of the considered opinion that it does not disclose any information which would lead the Authorities to have a reason to believe that any of the contingencies as contemplated by Section 132 (1) (a) to (c) of the said Act are satisfied. That apart, the note also does not contain anything altogether regarding any reason to believe, as regards what has been stated in Section 132 (1) (a) to (c) of the said Act, on account of which, in our considered opinion, there is total non-compliance wit....