MDLR Resorts (P.) Ltd. v. CIT [2013 SCC OnLine Del 5174]
Facts:
A search and seizure operation against the petitioners were initiated against a person who
belonged to one MDLR Group. The petitioners accepted the search and seizure operations in
the writ petitions but the contention raised was that there was no panchnamas drawn/issued
against them and, thus, proceedings under section 153A were void and bad for want of
jurisdiction. They also raised another contention that which was neither been raised in the
writ petition nor in the amended writ petition, but in the rejoinder affidavit of the amended
writ petition, was to the effect that probably and possibly no warrant for search under section
132 was issued against the petitioners and, therefore, their names did not appear in the
panchnamas.
Issue:
Does the lapse and failure to comply with the requirements of search and seizure manual
(panchnama not containing names of the petitioners) would affect the validity of the search?
Law:
Section 132 of Income Tax Act 1961
Analyzation:
The names of parties to be subjected to search have been mentioned at two separate places on
the first page of search warrants. The first point or place refers to pre-conditions mentioned in
sections 132(1)(a) and (b) and the second point or place refers to the pre-conditions stipulated
in section 132(1)(c). The Second page of the form requires mentioning the address where the
suspected books of account, other documents, money, bullion, jewellery, valuable articles etc.
were kept, by the persons who were being subjected to search. In the panchnamas relating to
MDLR Estate Private Ltd., MDLR Hotels Private Ltd. and 'S' Builders Private Ltd., it was
noticed that their names were not included in the names of the persons mentioned in the
column relating to clauses (a) and (b) of section 132(1). However, their names were
mentioned in the column relating to section 132(1)(c). The court held that the address of a
company will normally mean its registered office or head office etc. But a person can also
operate from or keep documents, money at different places and not necessarily from where
