Pawapuri Fuel Station V. Union of India through Secretary of Finance and State of Bihar through Director General of Police and Chairman, CBDT and Principal Chief Commissioner of Income Tax and Principal Commissioner of Income Tax and Commissioner of Income Tax, Central Circle and Joint Commissioner of Income Tax and Deputy Commissioner of Income Tax and Assistant Commissioner of Income Tax and Income Tax Officer, ward 6(4) and Superintendent of Police Nalanda

CWJC/11294/2021

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The case involves M/s Pawapuri Fuel Station, which challenged a notice issued under Section 153A of the Income Tax Act, 1961, following the seizure of a substantial amount of money during a police interception. The petitioner argued that the notice was improperly issued as there was no preceding search or requisition as required by the Act. However, the respondents provided evidence of a requisition under Section 132A, which supported the issuance of the notice. The court dismissed the petition, allowing the Income Tax authority to proceed with the case.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 803330 (HC-PATNA)
• Appeal Type: Others
• Pronouncement Date: 25-04-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: K N SINGH
• Assessee Lawyers: PRAKASH SAHAY
• Keywords: Election; Income Tax; Notice; Requisition; Search; Seizure
• Section: 132; 153A; 132A

Judgement Text

"IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No. 11294 of 2021 ====================================================== M/s Pawapuri Fuel Station Biharsharif, P.O. and P.S. Ranabigha, Nalanda 803101. ... ... Petitioner/s Versus 1. Union of India through Secretary of Finance North Block New Delhi 110001. 2. State of Bihar through Director General of Police Old Secretariat, Patna- 800001. 3. Chairman, CBDT, North Block New Delhi 110001. 4. Principal Chief Commissioner of Income Tax, C.R. building, Birchand Patel Path Patna-800001. 5. Principal Commissioner of Income Tax, C.R. building, Birchand Patel Path Patna-800001. 6. Commissioner of Income Tax, Central Circle, C.R. building, Birchand Patel Path Patna-800001. 7. Joint Commissioner of Income Tax, Lok Nayak Bhawan, Dakbanglow Road, Patna-800001. 8. Deputy Commissioner of Income Tax, Lok Nayak Bhawan, Dakbanglow Road, Patna-800001. 9. Assistant Commissioner of Income Tax, Lok Nayak Bhawan, Dakbanglow Road, Patna-800001. 10. Income Tax Officer, ward 6(4), Lok Nayak Bhawan, Dakbanglow Road, Patna-800001. 11. Suprendent of Police Nalanda 803101. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Prakash Sahay, Advocate For the Respondent/s : Dr. K.N. Singh (ASG) ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE MADHURESH PRASAD ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 25-04-2023 1. The petitioner, an assesse under the Income Tax Act, 1961, is aggrieved with Annexure-5 notice issued under Section Patna High Court CWJC No. 11294 of 2021 dt.25-04-2023 2/4 153A dated 26.03.2021. It is the contention of the assesse that though notices were issued under Section 143 of the Income Tax Act, 1961 in various years, there were no further steps taken. The assesse had been regularly filing returns and paying tax under the Act. On 03.04.2019 while the assesse’s employee was taking the proceeds of the day to the Bank, for depositing in an account, the vehicle was intercepted by the Police and the 20 lakhs found in the vehicle was seized, especially since it was the time when the General Elections to the Parliament was on the anvil. The instant proceeding has been initiated, as asserted by the learned counsel for the appellant, without compliance of the prerequisite for issuance of such a notice. Section 153A was read over by the learned counsel, repeatedly, to emphasize the prerequisite of a search initiated under Section 132 or the books of accounts, documents or any assets being requisitioned under Section 132A. 2. The challenge is to a notice and we need only refer to the contention of the respondent. As is evident from the counter affidavit filed, the learned Senior Standing Counsel specifically draws our attention and refers to Annexure-E produced along with the supplementary counter affidavit, sworn on 11.08.2021 by the Assistant Commissioner of Income Tax, Central Circle 1, Patna. Annexure-E is a warrant of authorization under sub-section (1) of Patna High Court CWJC No. 11294 of 2021 dt.25-04-2023 3/4 Section 132A of the Income Tax Act, 1961 in Form No. 45(e) as appended to the Rules; issued to Sri Nagender Kumar, M/s Pawapuri Fuel Station to produce books of account or other documents regarding the assets taken into custody by the SHO, Laheri Thana, Biharsharif. Sri Nagender Kumar, the noticee in Annuxure-E is the person representing the petitioner, M/s Pawapuri. Section 153A notice is not confined to circumstances in which a search is initiated under Section 132, as asserted by the learned counsel for the petitioner. Even when a requisition is made under Section 132A, calling for books of account, other documents or any assets in the possession of the assesse or any other person, it could be followed up with a notice under Section 153A. 3. We find no reason to entertain the writ petition filed against a mere notice issued, the prerequisite of which is seen perfectly followed. We are told that the Income Tax authority has completed the proceedings as permitted by this court in an interim order, but kept in abeyance the communication of the order only in deference to the pendency of the writ petition and the order dated 23.09.2021 wherein it has been stated that even if the proceedings are completed, the order shall not be given effect without leave of this Court. In such circumstances, if the petitioner has been heard before the conclusion of the proceedings, the order shall be given Patna High Court CWJC No. 11294 of 2021 dt.25-04-2023 4/4 effect to, subject to the further remedies available to the petitioner. 4. The writ petition is dismissed but with the above observation. sharun/- (K. Vinod Chandran, CJ) ( Madhuresh Prasad, J) AFR/NAFR NAFR CAV DATE N/A Uploading Date 29.04.2023 Transmission Date N/A "