HEMENDRA RANCHHODDAS MERCHANT Vs. DIRECTOR OF INCOME TAX

JUDGEMENT

(1.) In these proceedings under Article 226 of the Constitution of India, petitioner has sought to question the legality of a warrant of authorization issued by the first respondent under Section 132 of the Income Tax Act, 1961 and all proceedings consequent thereto, including the assessments for Assessment Years 2001-2002, 2002-2003, 2003-2004, 2004-2005 dated 24 November, 2008. The orders of assessment stand confirmed by the Commissioner of Income Tax (Appeals) on 30 March, 2010. The Petitioner has filed appeals against the orders of the CIT(A) which are stated to be pending before the Income Tax Appellate Tribunal.

(2.) Warrants of authorization were issued under Section 132 by the Director of Income Tax (Investigation). Search and seizure proceedings were conducted in pursuance of the warrants of authorization, inter alia at the business premises and at the residential premises of the petitioner and his wife. A notice was issued on 28 May, 2007 under Section 153(a) calling for the returns of Income for the Assessment Years 2001-02 to 2004-2005. On 29 May 2007 the petitioner filed an application before the Settlement Commission under section 245C(1). On 17 July 2007 returns of income were filed. The orders of assessment were passed on 24 November 2008. The CIT(A) disposed of the appeals filed by the petitioner by an order dated 24 November 2008. The CIT(A) held that the validity of the search and seizure cannot be challenged either before him or before the Tribunal but only before this Court in the exercise of its writ jurisdiction. As noted earlier, the petitioner is in appeal before the Tribunal against the orders passed by the C.I.T.(A).

(3.) Counsel appearing on behalf of petitioner submitted that the warrants of authorization under Section 132(1) are unlawful and must be set aside by this Court for the following reasons :