RAMESH G. AND ORS. Vs. PRAKASH V. SANGHVI

JUDGEMENT

(1.) The Revenue has preferred this Writ Appeal against the order passed by the learned Single Judge holding that the Income Tax Officer is not vested with the power to have a camp office at the residence of the assessee and get his attendance in connection with the proceedings under the Income Tax Act and therefore the notice issued as per Annexure-A is one without authority of law and setting aside of the said notice.

(2.) The learned Counsel appearing for the Revenue assailing the impugned order contends that a reading of the provisions of Section 131 of the Income Tax Act makes it clear that if the authority under the Act, has reason to suspect that any income has been concealed or likely to be concealed by any person or class of persons within his jurisdiction, then for the purpose of making any enquiry or investigation relating thereto it shall be competent for him to exercise the power conferred under sub-section (1) on the Income Tax authorities. Therefore the notice issued under Section 131 of the Act is legal and valid and the learned Single Judge erred in setting aside the same.

(3.) Per contra, the learned Counsel for the assessee submitted that Order 11 of the Code of Civil Procedure which deals with enforcing attendance of any person and examining him on oath do not provide for opening camp office in the assessee's residence and therefore the notice issued calling upon the assessee to appear before the authority in the camp office set up in the assessee's residence is without jurisdiction and rightly the learned Single Judge was justified in setting aside the same.