| Case ID |
30334ddf-b20f-4624-97a6-3e993fcb3f71 |
| Body |
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| Case Number |
CIVIL MISCELLANEOUS WRIT PETITION No. 2465 OF 1974 |
| Decision Date |
May 28, 1974 |
| Hearing Date |
|
| Decision |
The court held that the Income Tax Officer (ITO) had no authority to impound any documents during a survey under section 133A of the Income-tax Act, 1961. The ITO's actions in impounding and taking away the petitioner's books of accounts and documents were without authority of law. Therefore, the ITO was directed to return the impounded documents to the petitioner. The court found that the ITO's claim that the Manager did not afford the requisite facilities was untrue and that the notices issued under section 131 were also quashed. However, the court could not grant the relief regarding the return of loose sheets as the ownership of these documents was in dispute. The petition was allowed in part, emphasizing the need for adherence to legal protocols during tax surveys. |
| Summary |
In the case of United Chemical Agency v. R.K. Singh, Income Tax Officer, the Allahabad High Court addressed significant issues related to the powers of the Income Tax Officer during a survey conducted under section 133A of the Income-tax Act, 1961. The case revolved around the legality of the ITO's actions in impounding documents and books of accounts belonging to the petitioner. The court determined that the ITO exceeded his authority as the law does not permit impounding documents during a survey. The ITO's assertions that the Manager did not provide necessary facilities for inspection were found to be false, leading to the quashing of the notices issued under section 131. The decision reinforces the necessity for tax authorities to operate within the confines of the law, ensuring that the rights of taxpayers are protected. The ruling also highlights the importance of due process in tax matters and the potential consequences of overstepping legal boundaries, making it a significant precedent in tax law. This case is particularly relevant for tax practitioners and businesses, emphasizing the importance of understanding the powers and limitations of tax authorities during audits and surveys. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
Satish Chandra,
H.N. Seth
|
| Lawyers |
S.C. Khare,
R.K. Gulati,
S.N. Kacker,
Dr. R.R. Misra
|
| Petitioners |
United Chemical Agency
|
| Respondents |
R.K. Singh, Income Tax Officer
|
| Citations |
1974 SLD 733 = (1974) 97 ITR 14
|
| Other Citations |
Pooran Mal v. Director of Inspection (Investigation), Income-tax [1974] 93 ITR 505 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
133A,
131
|