IT Dept Not Obliged To Furnish Documents Seized Pursuant To Authorized Search To Any Public Servant: Karnataka High Court

The Karnataka High Court has said that once search and seizure proceedings are undertaken by officials of the Income Tax Department under authorisation, they are not obliged to furnish any document to any public servant in respect of such matters relating to the assessee. Justice M Nagaprasanna said that, "On a conjoint reading of Sections 132 and 138 of the Income Tax Act, would lead to an unmistakable conclusion that once such seizure proceedings are undertaken by the officials of the Department under authorisation, they are not obliged to furnish any document to any public servant in respect of such matters relating to the assessee against whom search and seizure is taken up." Advocate K.V.Aravind, appearing for the petitioners submitted that, registration of FIR against the petitioners is not maintainable as there is protection to the act of the petitioners under Section 293 of the IT Act and under Section 138 of the IT Act any document or incriminating material seized in a search and seizure proceedings under Section 132 of the Act, cannot be handed over or divulged as Section 138 of the Act begins with a non-obstante clause. Court findings: The Court on going through the facts of the case and the various provisions of the Income Tax Act and the complaint filed by the MLA said, "A perusal at the complaint would in unmistakable terms indicate that what the complainant ultimately wanted is, the diary that was seized as according to the complainant, the Department would be using the diary for development of certain incriminating investigation."