INCOME TAX

Instruction No : 2

Date of Issue  : 19.3.2004

Subject : Written submissions in Appeals/Writ filed before the High Court challenging the validity of search-reg.

The Board has given serious consideration to the manner in which submissions are made in Appeals/Writs instituted before the High Court, wherein validity of search is being challenged on grounds of non-recording of reasons/non-existence of satisfaction note/illegality of search etc.

2. The Board hereby directs that wherever the validity of search is either being challenged by the assessee or defended by the Department:

 (a)  A statement of written submissions be invariably made by the Department incorporating therein all the relevant facts with supporting documents like existence of satisfaction note, brief outline of steps of inquiry that culminated into authorisation of search warrant and a gist of information already with the Department vis-a-vis stock/bullion/cash and other relevant material etc. as corroborated by search, irrespective of the fact whether the HC asks for the same or not.

 (b)  In all cases before the High Court, where orders under sections 158BC/158BD, 153A/153C have been quashed by ITAT on the grounds that no valid search existed, it shall be the duty of CCIT/CIT and of DGIT(Inv.)/DI (Inv.), jointly, to ensure compliance with the directions contained in para (a).

  (c)  The written submissions made before High Court along with the paper book compilation, should invariably be forwarded to the Board, wherein SLP is recommended against the order of the High Court quashing the search on any ground.

4. The Counsels engaged by the Department to deal with such matters should be directed in writing to make the aforesaid written submissions, before the Hon'ble High Court, in addition to oral pleadings.

3. The contents of this Instructions should be circulated for strict compliance.