Supreme Court Reviews Scope Of Income Tax Search & Seizure Powers

The Supreme Court on Tuesday examined concerns regarding the scope of search and seizure powers under Section 132 of the Income Tax Act while hearing a Public Interest Litigation.

The petition challenges the breadth of authority granted to income tax officials, arguing that the provision allows excessive powers and may lead to misuse. The court observed that mandating prior notice before conducting search and seizure operations could defeat the purpose of an investigation, particularly in cases involving digital records where evidence can be erased or devices destroyed.

A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and N.V. Anjaria heard submissions from senior advocate Sanjay Hegde, appearing for petitioner Vishwaprasad Alva. During the hearing, the court highlighted the practical difficulties investigators face in the digital era if advance notice is required.

The petitioner contended that the provision exposes not only the assessee under scrutiny but also third parties who may be in contact with the individual concerned. The Chief Justice stated that the statutory powers are not uncontrolled and deferred the matter for further consideration after two weeks.