The Commissioner of Income Tax (Central) -II vs Capital Power Systems Limited

Badar Durrez Ahmed, J.—The only issue sought to be raised in the present appeal is whether the Joint Director of Income Tax (Investigation), Unit-VII, New Delhi was empowered to issue the warrant of authorization for search and seizure operations u/s 132(1) of the Income Tax Act, 1961 (hereinafter referred to as �the said Act�). In a separate decision delivered by us today itself in the case of CIT v. Pawan Kumar Garg ITA 881/2008, we held that there is no notification issued by the Central Board of Direct Taxes specifically empowering any Joint Director of Income Tax (Investigation) to authorize action u/s 132(1) of the said Act. We also held that the notification issued on 11.10.1990 by the Central Board of Direct Taxes empowering certain specified Deputy Directors of Income Tax (Investigation) and Deputy Commissioners would not, by virtue of the mere re-designation of Deputy Directors of Income Tax as Joint Directors of Income Tax, as per notification dated 23.10.1998 issued by the Central Government u/s 117(1) of the said Act, by itself mean that a Joint Director of Income Tax is also empowered to authorize action u/s 132(1) of the said Act. A specific notification u/s 132(1) of the said Act would necessarily have to be issued by the Central Board of Direct Taxes if it wishes to empower any Joint Director to authorize action to be taken u/s 132(1) of the said Act. In the absence of any such specific empowerment by the board, we held that the Joint Director is not empowered to issue any authorisation. Consequently, following the said decision in CIT v. Pawan Kumar Garg ITA 881/2008, the present appeal is liable to be dismissed.

It is ordered accordingly. There shall be no order as to costs.