| Case ID |
380f53fd-588a-48e5-92a0-471b57eeb3ed |
| Body |
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| Case Number |
Civil Appeal No.5526 of 1983 |
| Decision Date |
Mar 05, 1997 |
| Hearing Date |
|
| Decision |
The Supreme Court affirmed the decision of the Allahabad High Court, which had quashed the warrant of authorisation issued by the Commissioner of Income-tax under section 132-A of the Income Tax Act, 1961. The Court held that the information in the possession of the Commissioner did not provide a reasonable basis to believe that the amount in the possession of Vinod Kumar Jaiswal represented undisclosed income. The appeal was dismissed, and the lower court's ruling was upheld, emphasizing the necessity of sufficient evidence before issuing a warrant for search and seizure under tax laws. |
| Summary |
In the landmark case of Vindhya Metal Corporation v. Commissioner of Income Tax, the Supreme Court of India examined the validity of a warrant issued under the Income Tax Act for the seizure of funds. The case stemmed from the seizure of Rs. 4,63,000 from Vinod Kumar Jaiswal, who was traveling by train without any documentation to prove ownership. The Income Tax Commissioner authorized a search based on this seizure. However, the High Court found that there was insufficient evidence to justify the belief that the money represented undisclosed income, leading to the quashing of the warrant. The Supreme Court upheld this decision, reinforcing the importance of reasonable belief and adequate evidence in tax enforcement actions. This case underscores critical aspects of tax law, particularly the standards for issuing search warrants and the protection of taxpayers' rights. Keywords: Income Tax Act, warrant of authorisation, undisclosed income, tax law, Supreme Court, legal precedent, taxpayer rights. |
| Court |
Supreme Court of India
|
| Entities Involved |
Vinod Kumar Jaiswal,
Rajendra Kumar Pandey
|
| Judges |
S. C. Agrawal,
G. B. Pattanaik
|
| Lawyers |
P. A. Choudhary, Senior Advocate,
Lakshmi Iyengar,
B. Krishna Prasad,
C. Radha Krishna,
Manoj Goel,
P. K. Jain
|
| Petitioners |
COMMISSIONER OF Income Tax
|
| Respondents |
others,
VINDHYA METAL CORPORATION
|
| Citations |
1997 SLD 214,
1997 PTD 1951,
(1997) 224 ITR 614,
(1998) 77 TAX 90
|
| Other Citations |
(1985) 156 ITR 233
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
132,
132A
|