Law:

Section:

Section 132 of the Income-tax Act, 1961 - Search and seizure - Whether Court, in an appropriate case, can order department to indicate contents or nature of information/material and reasons to believe authorizing search (without disclosing source of information) to aggrieved person - Held, yes - Whether question of relevancy of information/material and reasons to believe are to be judged after hearing aggrieved person - Held, yes - Assessee-company carried on business of precious metals, namely, gold, silver and platinum - It had several branches situated in different States and one warehouse was situated within Special Economic Zone (SEZ) at Noida - A search was conducted by department on 15-9-2009 and 16-9-2009 in offices, branches and warehouses of assessee at Noida allegedly on satisfaction note of DIT(I), Kanpur - Assessee challenged search action mainly on grounds that DIT(I), Kanpur had no jurisdiction to authorize search against it and that there was no relevant information that could lead to a reasonable belief to authorize search - Revenue's case was that relevancy of information leading to reasonable belief for authorizing search should be judged by Court, without disclosing same to assessee or its counsel - Whether since assessee had a warehouse at Noida within territorial jurisdiction of DIT (I), Kanpur and its business was also carried on from that place, DIT (I), Kanpur had jurisdiction to authorize search - Held, yes - Whether, however, considering special status given to person working in SEZ; amount of recovery; assertions that all transactions were through customs authorities or through bank and were shown in account books; audit report, Profit and Loss account and balance sheet being unavailable to DIT(I), Kanpur, assessee had made out a prima facie case regarding disclosure of information in possession of department - Held, yes FACTS The assessee-company carried on the business of precious metals, namely, gold, silver and platinum. The registered office of the company was situated at New Delhi. It had 8 branches situated in the seven different States of the country and at least one warehouse was situated within the Special Economic Zone…

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