| Case ID |
5c821a5f-8ef7-4d52-a314-e4a5175d87c3 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The court held that the Income Tax Officer (ITO) is a public servant as defined under Section 54 of the Income-tax Act, 1922, and that any disclosure of information by the ITO to the police officer is punishable under clause (2) of Section 54. It ruled that the search warrant issued by the Magistrate was illegal as it contravened the provisions of the Income-tax Act, which prohibits the production of certain confidential documents in court. The court emphasized that the confidentiality of tax-related documents must be maintained to encourage full disclosure by taxpayers. The court ultimately set aside the order of the Magistrate and quashed the warrant, reinforcing the importance of adhering to the confidentiality provisions outlined in the Income-tax Act. |
| Summary |
In this landmark case, the High Court examined the interplay between the Income-tax Act, 1961 and the Code of Criminal Procedure, 1998 regarding the confidentiality of documents held by the Income Tax Officer (ITO). The case arose when a police Sub-Inspector requested the ITO to produce certain income tax returns during an investigation. The ITO refused, citing Section 54 of the Income-tax Act, which deems such information confidential and prohibits its disclosure without specific authorization. The Magistrate, however, issued a search warrant for the documents, prompting the ITO to file a revision petition. The High Court found the search warrant to be illegal, reiterating that the confidentiality of tax documents is paramount to ensure that taxpayers are willing to provide complete and truthful information without fear of prosecution. The court upheld the integrity of the Income-tax Act's provisions and clarified that the police do not possess the authority to compel the production of these confidential documents. This decision underscores the importance of maintaining taxpayer confidentiality and protecting sensitive financial information from undue disclosure. Key phrases such as 'Income-tax Act', 'confidentiality of documents', 'search warrant', and 'public servant' are vital for understanding the implications of this ruling. |
| Court |
High Court
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| Entities Involved |
Not available
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| Judges |
WESTON, C.J.,
KHOSLA, J.,
HARNAM SINGH, J.,
KAPUR, J.,
SONI, J.
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| Lawyers |
M.L. Puri,
S.L. Puri,
Harbans Lal Sehgal,
B.K. Khanna
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| Petitioners |
Income Tax Officer
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| Respondents |
State
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| Citations |
1950 SLD 112 = (1950) 18 ITR 688
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| Other Citations |
Emperor v. Osman Chotani [1942] 10 ITR 429 (Bom.),
O'Flaherty v. McDowell 6 HLC 162; 29 LT 33,
Queen v. Commissioners of Inland Revenue 21 QBD 569,
Queen v. Wilkinson [1891] 1 QB 722,
Rowell v. Pratt [1937] 3 All ER 660,
Stewart v. Greaves 10 M&W. 711
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| Laws Involved |
Income-tax Act, 1961,
Code of Criminal Procedure, 1998
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| Sections |
280,
54,
94,
96
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