SABROSE FINANCE CORPORATION Vs. HARYANA STATE

JUDGEMENT

(1.) THE petitioner herein, Smt. Viran Wali, an alleged partner of M/s. Sabrose Financial Corporation, is a contending party in a reference under Section 30 of the Land Acquisition Act, 1894, pending before the Additional District Judge, Gurgaon. To further her case, she required production of tax assessment files pertaining to some back assessment years relating to M/s. Sabrose Financial Corporation and for that purpose, a direction by the court to the concerned ITO. This was opposed by another contending party, Kesar Singh, styling himself to be the sole proprietor of M/s. Sabrose Financial Corporation, who is the contesting respondent herein. The two applications filed by the petitioner for the purpose were allowed by the court and the concerned ITO was requested to send those files. The ITO while sending the requisitioned files in sealed covers, claimed privilege in terms of Section 138 (2) of the I. T. Act, 1961, and regretted that the information contained in those files could not be disclosed.

(2.) THE contending parties mooted the question before the court below as to whether the privilege had rightly been claimed by the ITOs. Precedents one way or the other were cited. The court took the view that the privilege claimed by the Income-tax Department must be upheld. The aggrieved petitioner has approached this court.

(3.) AS is plain, a privilege has specifically been claimed under Section 138 (2) of the aforesaid Act which is in the following terms: