ISSUE:
Are Sections 132(1) and 132(5) of Rule 112(A) of the Income Tax Act, 1961 violative of Articles 14, 19(1)(f) and (g) and 31 of the Constitution of India?
Can a writ of Prohibition to restrain the authorities from using the ‘information gathered from the documents seized’ should be issued?
RULE:
When one has to consider the reasonableness of the restrictions or curbs placed on the freedoms mentioned in Art. 19(i) (f) and (g), one cannot possibly ignore how such evasions eat into the vitals of the economic life of the community. Therefore, in the interest of the community, it is only right that the fiscal authorities should have sufficient powers to prevent tax evasion.
If the safeguards while 'carrying out search and seizure are generally on the lines adopted by the Criminal Procedure Code they would be regarded as adequate and render the temporary restrictions imposed by these measures as reasonable.