Sleeping Partner Denied Tax Info Disclosure for Private Arbitration Under Section 138(1)(b) of Income Tax Act

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....The HC dismissed the writ petition filed by a sleeping partner seeking disclosure of information obtained during search and seizure under section 138(1)(b) of the Income Tax Act for use in private arbitration proceedings against co-partners. The court held that the petitioner, not being bonafidely entitled to the information and seeking it solely for personal defence in arbitration, failed to demonstrate any public interest or justifiable ground for relief. The Act and rules do not authorize disclosure of such information to third parties absent clear statutory mandate. Information collected during search and seizure cannot be released for private disputes, and no writ of mandamus can compel the respondents to provide it. However, if such information is used by authorities against the petitioner in prosecution, he would be entitled to it, a circumstance not present here.....