Gujarat High Court Condemned the Misconduct of I-T Dept during a Search Operation in an Advocate’s Chamber & Directed a Formal Apology

The Court affirmed the department’s right to initiate such proceedings based on material presented to the court

In a recent landmark decision, the Gujarat High Court upheld the legality of search and seizure operations carried out by the Income Tax (I-T) department at the residence and office of practicing advocate Maulik Sheth. The operation, conducted between November 3 and 7 last year, was prompted by allegations of income tax evasion.

Maulik Sheth challenged the search in a petition, citing concerns over the violation of his fundamental rights, particularly regarding privacy infringements. However, a division bench comprising Justices Bhargav Karia and Niral Mehta dismissed the challenge, affirming the department’s right to initiate such proceedings based on material presented to the court.

Despite upholding the legality of the search, the Court strongly condemned the misconduct observed during the operation, particularly the treatment of Sheth, his lady colleague and his family members. The behaviour of I-T inspector Amit Kumar was singled out for criticism, particularly regarding his treatment of Sheth’s colleague, Ms./Mrs. Patel.

The Court highlighted the need for a citizen-centric and respectful approach during such operations, stressing the importance of upholding basic human decency. It called for a formal apology to Ms./Mrs. Patel for the misconduct observed during the search.

Furthermore, the Court clarified the applicability of attorney-client privilege in this case, emphasizing that incriminating material discovered during the operation could be used against third parties under certain conditions.

The ruling underscores the significance of maintaining a respectful and citizen-focused approach during search operations. The case, identified as SPECIAL CIVIL APPLICATION – No. 20187 of 2023, titled Maulikkumar Satishbhai Sheth vs Income Tax Officer, Assessment Unit, Ahmedabad, sets a precedent for future proceedings in similar cases.

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