Supreme Court Dismisses SLP Seeking Income Tax Search Based on Secret Information for Non- Prosecution [Read Judgment]

The Supreme Court of India dismissed a Special Leave Petition (SLP) seeking income tax search based on secret information and the SLP was dismissed for non prosecution.

The SLP arose out of the impugned final judgment and order dated 11-09-2020 in WP No. 2542/2018 11-09-2020 in WMP No. 26821/2018 11-09-2020 in WMP No. 3102/2018 passed by the High Court of Judicature at Madras.

The petitioner, MJ Shankar appeared before the Madras High Court contending that the petitioner herein has provided a secret information to the respondents and based upon the same sought action against the entity, who is not before us. As no action was forthcoming, the petitioner has come forward with this writ petition seeking a direction to the respondents to complete the investigation on his complaint dated 06.10.2015 and act upon the same.

The counsel for the respondents contended before the High Court that as per Section 149 of the Income Tax Act, the time limit is four years with an exception being two more years. Accordingly, the total period is six years. Section 153-A of the Income Tax Act cannot be pressed into service since it speaks of assessment in case of search or requisition. The said situation is not available on hand. Therefore, the writ petition will have to be dismissed.

A Division Bench of the Madras High Court observed that “we are of the view that the petitioner cannot seek such a relief before this court. Certainly, Section 153-A of the Act prohibits granting of the relief. The petitioner has come forward to file this writ petition anticipating reward from the respondents. Such a request cannot be at the cost of an assessee. When the law prohibits an action and the department itself has come forward to file an affidavit before this court that they are unable to initiate action, a writ of mandamus cannot be issued.”

A Two-Judge Bench of the Supreme Court comprising Justice BV Nagarathna and Justice Ujjal Bhuyan observed that “Since the counsel appearing for the petitioner is unable to make submissions in the matters, the special leave petitions are dismissed for non-prosecution.”

To Read the full text of the Order CLICK HERE

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