RUDRACHAR Vs. DIRECTOR OF INCOME TAX INV

JUDGEMENT

(1.) THE appellant claims that he is a manufacturer of silver and gold articles carrying on business under the name and style of "Anitha Metal Works" and an assessee under the Income-tax Act, 1961 ("the Act", for short). He has maintained a locker bearing No. 139 having taken it on hire from Shaswathi Leasing Private Limited at B.V.K. Iyengar Road, Bangalore.

(2.) IN pursuance of warrant issued under Section 132 of the INcome-tax Act, 1961, in regard to the premises of Shaswathi Leasing Private Limited, a search was conducted on March 31, 1997, at the premises of the said Shaswathi Leasing Private Limited. It is stated that as the appellant was maintaining a locker, on request, he voluntarily opened the locker at the time of search conducted in the premises of Shaswathi Leasing Private Limited and the contents of the said locker were inventorised and sealed on March 31, 1997.

(3.) IT is not disputed by the Department that on March 31, 1997, there was no search warrant in regard to the locker No. 139 of the appellant. However, the Revenue contends that while effecting search in pursuance of the warrant issued relating to Shaswathi Leasing Private Limited, the officers came across the locker and on the request of the officers, the petitioner voluntarily opened the locker and permitted inventory. IT is, therefore, submitted that what was done on March 31, 1997, was not a search and seizure but an inventory of the articles which was done with the concurrence of the appellant. In fact, the inventory list makes it clear that there was no seizure of any article on March 31, 1997. IT is not the case of the appellant that the officers of the Department forcibly opened the locker without any warrant for purposes of taking inventory and it is not disputed that the appellant himself voluntarily opened the locker to enable the inventory at the time of executing search warrant issued in regard to Shaswathi Leasing Private Limited. The first prayer for a declaration relating to inventory on March 31, 1997, is liable to be rejected.