COMMISSIONER OF INCOME TAX Vs. JAWAHAR LAL RASTOGI

JUDGEMENT

(1.) Jawahar Lal Rastogi hereinafter called 'the assessee' is a Hindu Undivided Family which carries on the business of money-lending at Lucknow and is also interested as a partner in different firms engaged in the business of manufacturing barbed wire, pharmaceuticals, etc.

(2.) On September 14, 1964, the Income-tax Officer, A-ward called upon the assessee to furnish within 10 days certain information with regard to its income and assets. On September 17, 1964 the Income-tax Officer submitted to the Commissioner of Income-tax a report requesting that he be authorised to enter and search the premises of the assessee. The Commissioner by his order dated September 19, 1964, authorised entry and search after recording reasons for his belief that it was necessary to carry out the search. On September 21 and 22, 1964, the premises of the assessee were searched and a large number of documents were seized and were taken away to the Income-tax Officer. The Income-tax Office also prepared inventories of the ornaments and other goods kept in the premises searched. After the seizure of the books of account and other documents the case was fixed for hearing before the Income-tax Officer on several occasions, but no substantial step was taken.

(3.) In May 1966 the assessee filed a writ petition in the High Court of Allahabad challenging the validity of the search made by the Department contending that it "was illegal and in excess of the power conferred by Section 132 of the Income-tax Act, 1961" and prayed that the documents seized may be ordered to be released. The High Court of Allahabad considered the evidence appearing from the affidavits filed and observed that in the present case the assessee had established the following "points":