Supreme Court Weighs Digital Age Challenges in Tax Search Powers

The Supreme Court on Tuesday delved into the complexities faced by investigators amidst the evolving digital landscape, highlighting concerns over issuing prior notices before searches and seizures.

Chief Justice Surya Kant, alongside Justices Joymalya Bagchi and N V Anjaria, examined the contentious Section 132 of the Income Tax Act, which grants IT officials the authority to conduct searches based on suspicion of undisclosed income or assets.

Senior advocate Sanjay Hegde, representing the PIL petitioner, argued that these provisions pose excessive risks to both alleged tax evaders and associated third parties. The court acknowledged these challenges but emphasized that existing powers are not unchecked.