The Supreme Court of India refused to hear a PIL challenging provisions of the Income Tax Act, 2025 permitting no-notice raids and digital searches, with a bench led by Surya Kant and Joymalya Bagchi.
NEW DELHI: The Supreme Court refused to hear a challenge to provisions of the Income Tax Act, 2025 that authorize tax officials to conduct no-notice raids and to search physical premises as well as private computer systems and virtual spaces while investigating suspected tax evasion.
A Bench led by Chief Justice of India Surya Kant along with Justice Joymalya Bagchi was seized of a public interest litigation contesting Section 132(1)(b) and (1)(c) of the Income Tax Act, 1961, and corresponding provisions in Section 247(1)(a)(ii) and Section 247(1)(b) of the Income Tax Act, 2025 (effective April 1, 2026).
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The petitioner had argued that these provisions are open to abuse and lack sufficient safeguards to prevent harassment of taxpayers.
CJI Bagchi, however, observed that the Court should not speculate about possible misuse where statutory remedies exist to address any actual harassment.
He said,
“We cannot second guess a provision to the extent of remedy provided. Remedy is good enough for us,”
CJI Kant described the petition’s concerns as largely speculative at this stage and noted that the widened search-and-seizure powers aim to combat major tax evasion.
He observed,
“This is an initial apprehension and some (provisions) are innocuously made which looks like it can be misused… So courts may have to examine it later. But often it is streamlined. These acts are often for the big tax evaders etc,”
After the petitioner sought permission to approach the Union government for clarifications on the contested provisions, the Court allowed him to withdraw the plea.
The challenge, brought by Vishwaprasad Alva, targeted the expansive authority granted to tax officers to access phones, emails, cloud storage and other digital records during raids without prior notice. The petitioner contended that the revised law vests income-tax authorities with broad powers to carry out searches and surveys without having to disclose reasons for doing so, raising privacy concerns and lacking clear safeguards against misuse.
The plea sought a declaration that the provisions are unconstitutional or should be read down to conform with Articles 14 (equality) and 21 (life and personal liberty) of the Constitution. As an alternate relief, the petitioner asked the Court to direct the Central Board of Direct Taxes (CBDT) to frame explicit rules governing raids, media disclosures, and the handling of complaints in a manner consistent with constitutional rights. The petition was filed through advocate Pranjal Kishore.
Senior Advocate Sanjay Hegde, appearing for the petitioner, accepted that prior disclosure of reasons for searches may not be required but urged that an internal recording mechanism should exist so those reasons can be reviewed if the action is challenged.
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He pointed to an explanation to Section 132 of the 1961 Act and a similar provision in Section 249 of the 2025 Act which state that a tax officer’s reasons for exercising search-and-seizure powers need not be disclosed to any person, authority or the income tax appellate tribunal.
Hegde told the Court,
“Question is, while I concede that reasons need not be disclosed in advance… but there should be a mechanism by which reasons should be within, in the institution, so that it can later relied upon. Please see what CAG audit said about this Section. Also my lord… a system can be made better so that assessees are not unnecessarily harassed,”
The Court indicated it was not inclined to investigate the matter further. Hegde proposed that the petitioner could approach government authorities if the Court granted liberty to do so; the CJI Kant clarified the court was not directing the petitioner to take that course.
He said,
“We do not want to oblige anyone. If you want to go, you can go,”
The Bench ultimately permitted withdrawal of the petition so the petitioner could seek clarifications from the government on the disputed provisions.
Case Title: Vishwaprasad Alva v. Union of India.
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