IAS vs IRS - Issuance of warrant of authorization and consequent search and seizure proceedings quashed - No arbitrary authority for revenue officers: HC
YESTERDAY'S DDT reported the story of an IAS officer being raided by the Income Tax Officers because he displeased a top IT officer who was trying to get a State Government Bungalow. Today we bring you the High Court order quashing the warrant and the consequent search and seizure proceedings.
The High Court noted that the Supreme Court had in the Seth Brothers case held that section 132 of the Act does not confer any arbitrary authority upon the revenue officers. The Commissioner or the Director of Inspection must have, in consequence of information, reason to believe that the statutory conditions for the exercise of the power to order search exist. He must record reasons for the belief. Since by the exercise of the power a serious invasion is made upon the rights, privacy and freedom of the taxpayer, the power must have been exercised strictly in accordance with the law or only for the purposes for which the law authorizes it to be exercised. If the action of the officer issuing the authorization or of the designated officer is challenged, the officer concerned must satisfy the court about the regularity of his action. If the action is maliciously taken or power under the section is exercised for a collateral purpose, it is liable to be struck down by the Court. If the conditions for exercise of the power are not satisfied the proceeding is liable to be quashed.
High Court found that the entire action which was initiated and taken was based without sufficient ground or material and it appears that because of dispute in respect of allotment of house, the respondents issued the warrant and search was conducted.