Clerical mistakes or omissions in the authorization process should not invalidate legitimate actions under the Income-tax Act.

( 1 ) IN the writ petition filed correctness of a search conducted, in terms of Section 132 of the Income-tax Act, 1961 (in short the "act"), and legality of an order under Section 142 (2a) of the Act have been questioned. Legality of the search conducted on 22/06/1998 and 7/07/1998 is questioned on the ground that there was no proper authorisation for the search by a competent person in respect of the property, wherein the said search was carried out. But at the time of hearing no argument was advanced in respect of the second plea i. e. , relating to order under Section 142 (2a) of the Act.

( 2 ) BACKGROUND, as projected by the petitioner, is essentially as follows: Petitioner company was incorporated on 31/05/1993 having its registered office at B-362/17, Gali No. 16, Block-B, Bhajanpura, Delhi. On 22/06/1998 Assistant Director of Income-tax, Unit IV (inshort "a. D. I. T. ") searched the premises C-397, Chadha Complex, Main Market, Bhajanpura, Delhi and sealed the premises. A panchnama was prepared, Search party was authorised to search one M/s. Sonu Systems, whereas the petitioner is a private limited company. On 7/07/1998 a second search party again searched the premises in question. It was stated that the search was in continuation of the proceedings on 22/06/1998. Panchnama was prepared and some loose papers and books containing cable connection holders and receipt books belonging to New Star Cable television (in short "n. S. C. ") were found with which the petitioner has no concern. Name of N. S. C. did not find place in the panchnama dated 22/06/1998, but in the panchnama dated 7/07/1998, name of N. S. C. was specifically mentioned in bracket. In the said panchnama, it was also specifically mentioned that seals placed on 22/06/1998 were found intact. On 7/09/1998 Chief Commissioner of Income-tax (in short the "chief Commissioner") passed an order under Section 127 of the Act, whereby cases relating to Shri Tilak Raj Chadha, M/s. Chadha Cloth House, Prop. Smt. Veena Chadha and one M/s. Sonu Systems were transferred from Ward 24 (6) to Deputy Commissioner, SR-36 for investigation and administrative convenience. Petitioner came to know about it on 9/06/2000, when he inspected departmental records after receipt of notice dated 25/05/2000. By the said notice, purported to have been issued under Section 158-BC of the Act, petitioner was asked to file true and correct return in the prescribed Form No. 2b for the block period, mentioned in the notice. After receipt of said notice on 30/05/2000, petitioner applied for inspection of the seized records. After inspection, petitioner came to know that there was no authorisation for search against the petitioner company, and obtained copies of the documents. On 9/06/2000 petitioner submitted its reply to the notice dated 25/05/2000. It was specifically mentioned that, the notice is bad and illegal, as there was no authorisation for search in relation to the petitioner. As there was no violation of the provisions of Clause (a), (b) or (c) of Sub-section (1) of Section 132, the action was incompetent. It was further stated that, petitioner only carried on business between 31/05/1993 to 15/02/1997, and suffered huge losses and ultimately on 15/02/1997 business was closed down. As there was huge losses and there was no positive income, return had not been filed under the Act. Therefore, the Deputy Commissioner of Income-tax (in short he "dy. Commissioner") was requested to vacate the notice dated 25/05/2000 and drop the proceedings. On 19th June, 2000, Joint Commissioner of Income-tax (in short "jt. Commissioner") issued a letter, whereby petitioner was informed that the case had been transferred to his jurisdiction and that reply dated l 2/06/2000 to the notice dated 25/05/2000 was without substance, as from the panchnama dated 22/06/1998 and 7/07/1998, it was evident that warrants were issued to search premises at C 397, Chadha Complex, Main Market, Bhajanpura, Delhi. P