Jaipal Singh V. Union Of India, Through Secretary, Ministry Of Finance, Government Of India, New Delhi and The Assistant Commissioner Of Income Tax, Central Circle-2, NCR Building, Statute Circle, C-Scheme, Jaipur (Raj.) and The Commissioner Of Income Tax, Central Circle-2, NCR Building, Statute Circle, C-Scheme, Jaipur (Raj.) and The Income Tax Officer, Ward -2 (3), NCR Building, Statute Circle, C-Scheme, Jaipur (Raj.) and The Deputy Director Of Income Tax (Investigation)-Ii, Jaipur NCR Building, Statute Circle, C-Scheme, Jaipur (Raj.)

CW/6307/2021

AI Insights

Jaipal Singh filed a writ petition against the Union of India and various Income Tax authorities, challenging the search conducted at his residence on 02.08.2017 and the subsequent assessment orders for the years 2012-13 to 2018-19. The petitioner alleged that the search was conducted without proper authorization and was based on incorrect assumptions about a tenant. The Income Tax authorities argued that the search was lawful and based on credible information. The court dismissed the petition, citing the petitioner's delay in filing and the availability of alternative remedies through the appellate process.

• Counselvise Citation: [2021] 140 COUNSELVISE.COM (IT) 699770 (HC-RAJASTHAN)
• Appeal Type: Others
• Pronouncement Date: 23-07-2021
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Assessee Lawyers: ANURAG KALAVATIYA
• Keywords: Abuse of power; Assessment Order; Compensation; Illegal search; Income Tax; Mental agony; Vexatious search
• Section: 132

Judgement Text

"HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR S.B. Civil Writ Petition No. 6307/2021 Jaipal Singh S/o Shri Girvar Singh, Aged About 49 Years, R/o Plot No. 35, Ground Floor, Chitragupt, Nagar - First, Imliwala Phatak, Jaipur (Raj.) ----Petitioner Versus 1. Union Of India, Through Secretary, Ministry Of Finance, Government Of India, New Delhi. 2. The Assistant Commissioner Of Income Tax, Central Circle-2, NCR Building, Statute Circle, C-Scheme, Jaipur (Raj.) 3. The Commissioner Of Income Tax, Central Circle-2, NCR Building, Statute Circle, C-Scheme, Jaipur (Raj.) 4. The Income Tax Officer, Ward -2 (3), NCR Building, Statute Circle, C-Scheme, Jaipur (Raj.) 5. The Deputy Director Of Income Tax (Investigation)-Ii, Jaipur NCR Building, Statute Circle, C-Scheme, Jaipur (Raj.) ----Respondents For Petitioner(s) : Mr.Anurag Kalavatiya, Adv. HON'BLE MR. JUSTICE ASHOK KUMAR GAUR Order 23/07/2021 This writ petition has been filed by the petitioner by making following prayers, which read as under :- (i) by issuance of a suitable writ, direction or order, Hon’ble Court may kindly be pleased to quash and set aside the search proceedings carried out against the Petitioner vide search requisition dated 02.08.2017; (ii) by issuance of a suitable writ, direction or order, Hon’ble Court may kindly be pleased to quash and set aside the Assessment Orders for assessment years 2012-13 to 2018-19 dated 31.12.2019 passed against the Petitioner by the Respondent no.2; (iii) by issuance of a suitable writ, direction or order, Hon’ble Court may (2 of 5) [CW-6307/2021] kindly be pleased to either pass suitable directions to the Respondent no.1 to suitably punish the erring Respondent Authorities for carrying out illegal and vexatious search proceedings against the Petitioner or to punish the said erring Respondent Authorities on its own; (iv) by issuance of a suitable writ, direction or order, Hon’ble Court may kindly be pleased to grant adequate compensation to the Petitioner from the erring Respondent Authorities for harassing the Petitioner and for involving him in a vexatious search proceeding and to grant further compensation on account of mental agony suffered at the hands of the erring Respondent Authorities. (v) Any other appropriate order or direction which this Hon’ble Court may consider just and proper in the facts and circumstances of the case may also kindly be passed in favour of the humble petitioner. (vi) Cost of the writ petition may also be awarded in favour of the Petitioner. Learned counsel appearing for the petitioner submitted that this is a classic case of abuse of power by the Income Tax Authorities in carrying out the illegal, arbitrary and vexatious search against the present petitioner without having any authority, basis and reason to believe to carry out the search at the residential premise of the petitioner. Learned counsel for the petitioner submitted that the search was carried out at the residential premises of the petitioner on 02.08.2017 only on the suspicion that one Mr.Ashok Singh was living in the house of the petitioner as tenant. Learned counsel submitted that the petitioner even did not recollect that such tenant with the name of Ashok Singh was (3 of 5) [CW-6307/2021] ever staying in the house about 15 years back and who was only a student at the relevant time, who had come to study, at Jaipur. Learned counsel submitted that the respondents while invoking powers under Section 132 of the Income Tax Act, did not apply their mind at all and in a most arbitrary manner, the search was carried out at the residential premises of the petitioner. Learned counsel further submitted that the authorization of the officers who entered in the premises of the petitioner, was also not validly done and further the Income Tax Authorities barged into the house of the petitioner and made search in illegal manner. Learned counsel further submitted that the search which was carried out was also in respect of information received by the Income Tax Authorities in respect of one firm Kiran Fine Jewellers with whom petitioner had no connection. Learned counsel submitted that after carrying out the illegal search, the Assessing Officer has made assessment of income of the petitioner for different assessment years starting from 2012-13 to 2018-19. Learned counsel further submitted that the right of appeal available to the petitioner though has been availed by him, however, the stay application filed by the petitioner has been dismissed by the Assessing Officer and as such, the petitioner is rendered remediless and he has no option except to approach this Court. Learned counsel further submitted that explanation appended to Section 132 of the Income Tax Act provides that reason to believe as recorded by the Income Tax Authority are not required to be disclosed to any person or any Authority or (4 of 5) [CW-6307/2021] Appellate Tribunal and as such, the only remedy left with the petitioner is to approach this Court. Learned counsel further submitted that the petitioner was only a Teacher who was working in the Education Department and his wife was also working as Teacher and as such, the assessment of income which has been made by the respondent- Department, is without any factual foundation and the same is exaggerated. Learned counsel further submitted that the transactions which are said to be recorded in some documents, alleged to be recovered at the residence of the petitioner, do not reflect any business or any other things carried out by the petitioner in his own name and only by entering the name of certain persons in the diary, the same should not tantamount to earning any income from the transactions, which are said to be recorded in the diary. I have heard learned counsel for the petitioner and perused the material available on record. This Court finds that the respondents-Authorities have carried out the search at the residence of the petitioner and after collecting the evidence, notices were issued to the petitioner to attend the proceedings before the Income Tax Authorities. This Court further finds that the alleged illegal search was carried out in the year 2017 itself and the petitioner has filed this petition after the assessment has been made by Income Tax Authorities. This Court further finds that if any illegal action is done by the Authorities in carrying out the search against the petitioner, the petitioner was within his right to avail the remedy provided at the relevant time. The alleged incident of the search is of (5 of 5) [CW-6307/2021] 02.08.2017 and petitioner after waiting for assessment to be completed, has approached this Court by filing this writ petition on 26.05.2021 and petition suffers from delay and laches too. This Court further finds that the assessment order passed against the petitioner is already put to challenge before the Appellate Authority and availing the parallel remedy under Article 226 of the Constitution of India by the petitioner, cannot be permitted. The submission of learned counsel for the petitioner that because of explanation provided under Section 132 of the Income Tax Act the only remedy is filing of writ petition before this Court, suffice it to say by this Court that the assessment which has already been made against the petitioner for different assessment, is also put to challenge by the petitioner by way of appeal and stay application in appeal has been dismissed. Accordingly, this Court finds no force in the present writ petition and the same is dismissed. (ASHOK KUMAR GAUR), J Himanshu Soni/Ramesh Vaishnav/10 "