A petition has been filed before the Supreme Court challenging provisions that empower the Income Tax (IT) Department to conduct raids and search digital devices and online data [Vishwaprasad Alva v. Union of India and Ors.].A Bench of Chief Justice of India (CJI) Surya Kant, Justice Joymalya Bagchi and Justice NV Anjaria briefly heard the matter on February 10 and listed it for further consideration after two weeks.During the hearing, the Court highlighted the risks posed by notice-based searches, particularly in the digital sphere.“If notice is given for this search and seizure… there is a potential for destroying the evidence. The best way to snub out such investigation against the digital record is to destroy the device itself,” it said..Senior Advocate Sanjay Hegde, appearing for the petitioner, however argued that the powers under the IT Act extend beyond the primary target of investigation. “Smart investigators always know. Suppose you go after the lawyer… but then you go after clerk’s phone… then… please see only evading assessee is not at risk. Anybody at contact is at risk and the power is kept with the joint commissioner,” Hegde said..Justice Bagchi, however, said,“There is no better example than what you say for invoking clause (b). If lawyer is called up to answer and you send a notice to the clerk under clause (a). Then he will also say phone is missing.”CJI Kant remarked that the powers are not unchecked, citing prior judgments.“This is not an uncontrolled or unwielded power. Please see Principal Director Of Income Tax (Investigation) v. Laljibhai Kanjibhai Mandalia. Your concerns will go,” CJI Kant said. .The petition was filed by one Vishwaprasad Alva challenging Sections 132 of the Income Tax Act, 1961, and corresponding provisions of the Income Tax Act, 2025, which allow tax authorities to carry out search and seizure operations. These raids can be carried out without prior notice once officials claim they have a “reason to believe” tax violations may have occurred. The petition raised concerns about the potential misuse of these powers and their impact on privacy, business rights, and judicial review. It also highlighted instances of false information being leaked to media following search operations..The petitioner recounted a search conducted by the Directorate General of Income Tax (Investigation) at the petitioner’s residence and business premises in November 2019. According to the plea, the searches were conducted without any evidence suggesting any underreporting of income. Though no incriminating materials were found, officials leaked false claims of “huge hauls of gold, unaccounted cash and assets” to media.Citing this case as an example, the petition challenged the broad search powers under tax laws, which now extend to phones, emails, cloud data and social media. As per the same, officials can carry out such searches without court approval and that individuals can be forced to share passwords or encryption keys during such raids..According to the petition, IT authorities have unchecked powers to conduct search and survey operations.“The absence of a provision deterring abuse of powers leaves the powers of income tax authorities to conduct search and survey operations completely unchecked and open to abuse but also results in an implementation of these legislations in a manner which violates the fundamental right to carry on an occupation, trade or business under Article 19(g) of the Constitution and the right to privacy guaranteed under Article 21,” it was submitted..The plea has prayed that these provisions be declared unconstitutional. Alternatively, it has urged the Court to direct the Central Board of Direct Taxes (CBDT) to set clear rules for conducting raids, handling media disclosures, and addressing complaints in line with constitutional rights.The petition was filed through advocate Pranjal Kishore..[Read Live Coverage].Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.
