Revenue authorities may decide to seize documents from a taxpayer (assessee) not named in the search warrant, but this could be contested in court.

A recent legal case where a company (petitioner) challenged the seizure of documents from its premises by government authorities (respondents).

Background:

• Authorities conducted a search on the petitioner's premises, presumably in connection with an investigation.
• During the search, documents were seized from the petitioner's first floor.
• The petitioner argues that the seizure was illegal and they have no connection to the company the search was intended for.

Petitioner's Arguments:

1. The petitioner seeks a court order directing the respondents to provide copies of the seized documents.
2. The petitioner contends, without prejudice to other arguments, that the seizure was illegal. They maintain no connection to the company under investigation.
3. The petitioner previously submitted a formal request (representation) dated May 11, 2024, demanding the return or copies of the seized documents.

Respondent's Arguments:

1. The respondents acknowledge the petitioner's representation and state it is under active consideration. They commit to resolving it within two weeks from the court date.
2. The respondents claim they searched the petitioner's first floor because the second floor was locked and the company of interest was believed to have an office there.
3. The respondents further argue that a signboard of the target company was found on the first floor, justifying the search location.

Court's Decision:

1. The court directs the respondents to dispose of the petitioner's representation within two weeks, following legal procedures.
2. The court clarifies that it hasn't considered or commented on the merits of either party's arguments.
3. Both the petitioner and respondents retain the right to pursue further legal action based on the final decision regarding the documents.

Case Law-Savinder Sharma Versus Director General Directorate of Revenue Intelligence

Citation- 2024 TAXONATION 1303 (DELHI)

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