Delhi HC on Section 153C: Statutory scheme does not mandate or envisage the discovery of a connect or interrelationship between the searched and the non-searched entity
Delhi HC in a recent judgment while dismissing the writ petitions filed by the assessee has held that the submission on behalf of the assessee that action under Section 153C must be premised upon some connection between the searched and the non-searched entity or for that matter on the material gathered having some link with the searched person is clearly misconceived.
The reasoning being that if the material that had been gathered were to have a link or connect to the searched persons, it would clearly not fall within the scope of Section 153C at all. This, since the commencement of action under that provision is itself predicated upon the material gathered in the course of the search belonging or pertaining to an unrelated party and one who may not have been covered under the search authorization.
Delhi HC concluded that the statutory scheme does not mandate or envisage the discovery of a connect or interrelationship between the searched and the non-searched entity.
The Copy Of the order is as under:
