1992 Supreme(Del) 126

High Court Of Delhi
COMMISSIONER OF INCOME TAX - Appellant
Versus
G.K.KAPUR - Respondent
Civil Miscellaneous (Main) 117 of 1974
Decided On : 02/21/1992

Headnote:CONSTITUTION OF INDIA, 1950 - Article 227 — Petition challenging the order of learned subordinate Judge rejecting claim of petitioner for production of record pertaining to years 1962-63 and 1963-64 of the assessed-Order rejecting the claim of privilege pertaining to the production of record for the years 1962-63 and 1963-64 set aside-claim of petitioner Commissioner of Income Tax sustained.

       Held:

       Applying the principles of law laid down by the Full Bench in suit No. 64/69 in Re: Tirlok Chand Jain and Ors. v. Dagi Ram Pindi Lal and Anr. decided on 14th December 1973 the impugned order rejecting the claim of privilege pertaining to the production of record for the years 1962-63 and 1963-64 has to be set aside and the claim of the petitioner Commissioner of Income-Tax has to be sustained.

       Head Note:

       INCOME TAX Disclosure of information — REPEAL OF S. 137 W.E.F. 1-4-1964 — Effect —

       Privilege of non-disclosure can be claimed by revenue of records filed before 1-4-1964 but not of thereafter.

       HELD : The Delhi High Court, in Trilok Chand Jain v. Dagi Ram Pindi Lal (1974) 95 ITR 34 (Del)(FB), held that the privilege of the department was available to records relating to years both before and after the repeal of s. 137. The decision of the Full Bench was challenged before the Supreme Court only to the limited extent in relation to the position of law relating to privilege after 1964 where the documents, records, etc., were filed by the assessed or a third party after April 1964 in respect of the asst. yr. 1964-65 onwards. The Full Bench decision was reversed by the Supreme Court in the case of Dagi Ram Pindi Lall v. Trilok Chand Jain (1992) 194 ITR 228 (SC). On the other questions decided by the Full Bench, the Supreme Court did not express any opinion and as such, the legal position as enunciated by the Full Bench, except to the limited extent reversed by the Supreme Court, remains the law applicable in respect of a claim of privilege. Applying the principles of law laid down by the Full Bench, the impugned order rejecting the claim of privilege pertaining to the production of records for the years 1962-63 and 1963-64 has to be set aside.

       Income Tax Act 1961 s.137