2024 (12) TMI 1348

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.....05.2024 (Annexure-10) and 19.06.2024 (Annexure-11) may kindly be quashed and set aside; and b. "reasons to believe" under Section 132 of the Income Tax Act, 1961 may kindly be called for, for perusal of this Hon'ble Court; c. any further, consequential and/or other appropriate writ, order or direction which this Hon'ble Court considers just and proper in the facts and circumstances of the case may kindly be passed in favour of the petitioner." 2. As the pleaded facts and the record would reveal, the petitioner (assessee) is the Sole Proprietor of the Firm M/s. K.P., and is engaged in the business of wholesale trading of gold jewelry/ornaments with purity of 18 & 22 Carat, since the year 2014, and that, there is nothing on record which could show any irregularities or illegalities on the part of the petitioner (assessee) in the conduct of the said business. 2.1. The gold ornaments so traded by the petitioner's Firm are very small in nature such as rings, tops, bangles, bracelet, necklace, chains etc., as per the trend and demand prevalent in the market at the relevant time, and therefore, it is not possible and feasible to maintain the stock register item-wi....

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....2.5. Furthermore, as per the petitioner, in response to the summons issued on 26.03.2024 under Section 131(1A) of the Act of 1961, the petitioner submitted a detailed response, with a request to quash and set aside the proceedings in question, and sought release of the seized jewelry (stock-in-trade). However, when the grievance of the petitioner still subsisted, he addressed a letter to the Deputy Director of Income Tax (Investigation), wherein as per the petitioner, he touched each and every legal as well as factual aspect of the matter in question, thereby prayed for release of the gold jewelry/ornaments (Net weight 4146.690 gms.) so seized in the proceedings in question. However, the said request was denied by the Deputy Director of Income Tax (Investigation), Bikaner, vide the impugned communication dated 13.05.2024, indicating amongst others that the same cannot be released at that stage, as it is not ascertainable that the seized goods were wholly related to the petitioner's Firm, and that, the assessment proceedings in the petitioner's case for the relevant assessment year, have not been initiated, on the said date of the issuance of the impugned communication. 2.6. Thus....

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.... (1A) If the Principal Director General or Director General or Principal Director or Director or Joint Director or Assistant Director or Deputy Director, or the authorised officer referred to in sub-section (1) of section 132 before he takes action under clauses (i) to (v) of that sub-section, has reason to suspect that any income has been concealed, or is likely to be concealed, by any person or class of persons, within his jurisdiction, then, for the purposes of making any enquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the income-tax authorities referred to in that sub-section, notwithstanding that no proceedings with respect to such person or class of persons are pending before him or any other income-tax authority. (2) For the purpose of making an inquiry or investigation in respect of any person or class of persons in relation to an agreement referred to in section 90 or section 90A, it shall be competent for any income-tax authority not below the rank of Assistant Commissioner of Income-tax, as may be notified by the Board in this behalf, to exercise the powers conferred unde....

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.... (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 Indian Income-tax Act, 1922 (11 of 1922), or this Act (hereinafter in this section referred to as the undisclosed income or property) , then , - (A) the Principal Director General or Director General or Principal Director or Director or the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner, as the case may be, may authorise any Additional Director or Additional Commissioner or Joint Director, Joint Commissioner, Assistant Director or Deputy Director, Assistant Commissioner or Deputy Commissioner or Income-tax Officer, or (B) such Additional Director or Additional Commissioner or Joint Director, or Joint Commissioner, as the case may be, may authorise any Assistant Director or Deputy Director, Assistant Commissioner or Deputy Commissioner or Income-tax Officer , ( the officer so authorised in all cases being hereinafter ref....

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....e the powers under this sub-section in all cases where he has reason to believe that any delay in getting the authorisation from the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner having jurisdiction over such person may be prejudicial to the interests of the revenue : Provided further that where it is not possible or practicable to take physical possession of any valuable article or thing and remove it to a safe place due to its volume, weight or other physical characteristics or due to its being of a dangerous nature, the authorised officer may serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it, except with the previous permission of such authorised officer and such action of the authorised officer shall be deemed to be seizure of such valuable article or thing under clause (iii): Provided also that nothing contained in the second proviso shall apply in case of any valuable article or thing, being stock-intrade of the business: Provided also that no authorisation shall be issued by the Additional Director o....

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....where it is not practicable to seize any such books of account, other documents, money, bullion, jewellery or other valuable article or thing, for reasons other than those mentioned in the second proviso to sub-section (1), serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with this sub-section. Explanation.-For the removal of doubts, it is hereby declared that serving of an order as aforesaid under this sub-section shall not be deemed to be seizure of such books of account, other documents, money, bullion, jewellery or other valuable article or thing under clause (iii) of sub-section (1). (4) The authorised officer may, during the course of the search or seizure, examine on oath any person who is found to be in possession or control of any books of account, documents, money, bullion, jewellery or other valuable article or thing and any statement made by such person during such examination may thereafter be used in evidence in any ....