Amendment in Sec 132A by Finance act 2017 where "reason to believe" or "reason to suspect" SHALL NOT be disclosed to any person/ Authority etc

M/s N. K. Jewellers vs. CIT (Supreme Court) - 27 Sep 2017

One of the Question of law discussed: 132A provides that the 'reason to believe' or 'reason to suspect', as the case may be, shall not be disclosed to any person or any authority or the Appellate Tribunal as recorded by Income Tax Authority. Hence can the reasons be challenged before any court?

Some important pointers discussed:

1- Even otherwise, we find that the explanation given by the appellant regarding the amount of cash of Rs.30 lacs found by the GRP and seized by the authorities has been disbelieved and has been treated as income not recorded in the Books of Account maintained by it. In view of the above, we do not find infirmity in the order passed by the High Court,


2-Further, we find that in view of the amendment made in Section 132A of the Income Tax
Act, 1961 by Finance Act of 2017, the 'reason to believe' or 'reason to suspect', as the case may be,
shall not be disclosed to any person or any authority or the Appellate Tribunal as recorded by Income Tax Authority under Section 132 or Section 132A. We, therefore, cannot go into that question at all,


3- Even otherwise, we find that the explanation given by the appellant regarding the amount of cash of Rs.30 lacs found by the GRP and seized by the authorities has been disbelieved and has been treated as income not recorded in the Books of Account maintained by it. In view of the above, we do not find infirmity in the order passed by the High Court.......

For reading full text please refer link - http://itatonline.org/archives/ms-n-k-jewellers-vs-cit-supreme-court-s-132-the-plea-that-the-search-proceedings-initiated-us-132-are-invalid-and-that-the-block-assessment-proceedings-are-without-jurisdiction-cannot-be-entertaine/nk-jewellers-search-132-validity/