S.158BD/158BC-Provision has draconian consequences.

Last updated: 10 January 2008

Court :
SUPREME COURT

Brief :
The conditions precedent for invoking the provisions of section 158BD thus, are required to be satisfied before the provisions of the Chapter XIV-B are applied in relation to any person, other than the person whose premises had been searched under section 132 or whose documents and other assets had been requisitioned under section 132A. The provisions contained in Chapter XIV-B are drastic in nature. It has draconian consequences. Such a proceeding can be initiated only if a raid is conducted. When the provisions are attracted, legal presumptions are raised against the assessee. The burden shifts on the assessee. Audited accounts for a period of ten years may have to be reopened.

Citation :
Manish Maheshwari* v. Assistant Commissioner of Income-tax CIVIL APPEAL NOS. 924 & 925 OF 2007 DECIDED ON 23 -2 -2007