Law:

Section:

Section 132 of the Income-tax Act, 1961 - Search and seizure - Assessee was professor and head of department of surgery in a medical college and an eminent surgeon - A complaint was filed against assessee stating that assessee had fantastically high income and that if search was made huge amount of undisclosed money was likely to be found - On basis of said information, assessee's premises were searched by department - Whether on basis of such information unsupported by objective material, reasonable belief could be formed for taking action under section 133 against the assessee - Held, no Facts The assessee was a professor and head of department of surgery in a medical college and an eminent surgeon. A person filed a complaint with the department in November and December 1986 that the assessee was charging Rs. 40 as consultation fee and Rs. 4,000 to Rs. 6,000 for one operation and, thus, earning Rs. 30,000 to Rs. 35,000 per day. The complainant stated that he had gathered the said information from the assessee's servants, patients and the assessee himself and that if a search was made, huge amount of undisclosed money of the order of Rs. 20 lakhs was likely to be found. On the basis of the said information, the Director of inspection, after a period of one and a half years, gave his report on 25-5-1987 and issued an authorisation warrant under section 132(1). Thus, on 26-5-1987, the house of the assessee was searched by 25 officials of the department and by a restraint order under section 132(3), the bank accounts and the lockers of the assessee were sealed. The assets discovered on search included Rs. 19,000 in cash, some jewellery and National Savings Certificates/Units worth a little over Rs. 2 lakhs. On writ petition, the petitioner prayed to the Court for quashing the authorisation warrant issued under section 132 and the follow-up action taken thereon including the restraint order issued under section 132(3). Held In the instant case, the information given by the complainant was of a very general nature. What could have resulted in action against the petitioner under section 132 was a reasonable belief that he was in possession of any money, bullion or…

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