Law:

Section:

Section 132 of the Indian Income-tax Act, 1961 - Search and seizure - Whether class of persons intended to be proceeded against under section 132 is entirely different from class of persons contemplated under section 131, and discrimination or distinction between two classes rest upon a perfectly understandable basis - Held, yes - Whether power given to an Income-tax Officer under section 132 can be exercised only after proper authorisation from Commissioner who will presumably do so only on being satisfied about certain matters, and a search of premises authorised by Act is to be made according to an orderly procedure which has been indicated in Act and Rules - Held, yes - Whether therefore, provisions of section 132 is not hit by article 14 of Constitution - Held, yes FACTS On 2-1-1964, certain ITO, duly authorised by the Commissioner made search of the premises of the petitioners and seized certain documents believing that they were useful for certain proceedings initiated under the Income-tax Act. In instant writ petitions, the petitioners challenged the legality of the search and seizure of the documents and it should be held that less favourable procedure contained in section 132 is hit by article 14 of the Constitution, being discriminatory in an arbitrary sense. The argument of petitioner was that both the provisions of section 131 and 132 are meant to apply to the same class of person but it was left to the arbitrary will of the ITO to proceed either in one way, that is under section 131 or in a more drastic and less favourable manner under sections 132 and, consequently, there was here to an unconstitutional discrimination which the law does not permit. HELD Looking at the provisions, as they stand, it seemed hardly possible to agree that the class of persons contemplated under section 131 is the same as that under section 132, and although it is true that there is power in the ITO given by section 131 to compel the production of any documents or books of account, it is hardly possible to agree that it is the same kind of power which vests in him under section 132. The two powers are entirely different and obviously meant to be exercised in two…

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