INCOME TAX OFFICER Vs. RAJ AND RAJ INVESTMENTS

JUDGEMENT

(1.) THE appellants are IT authorities. On the basis of the authorisation issued by the Jt. CIT Range -II, the first appellant surveyed the premises of the respondent and voluminous documents, books of account and other incriminating material had been impounded. Being aggrieved by the same, the respondent filed a writ petition and the learned single Judge quashed the authorisation, impounding order and all other actions of the appellants and imposed cost of Rs. 5,000 on the appellants. The impounded documents have been directed to be returned to the respondent by retaining the copies thereof authenticated by the respondent. Liberty was also given to the appellants to take action in accordance with law. In this appeal the appellants have challenged the said order of the learned single Judge.

(2.) MR . K.V. Aravind, learned Counsel for the appellants, submitted that the order of the learned single Judge is liable to be set aside as otherwise public interest would be affected. He further submitted that since the partner of the respondent -firm has not furnished the names and addresses of the persons whose documents are said to have been impounded, it will be very difficult for the authorities to proceed further in the matter. It is contended that the order under appeal is contrary to Section 133A of the IT Act, 1961 and it has defeated the very object of the said provision. The counsel relied upon Section 133A(1), (3)(ia) and (b) of the Act. It is further contended that if there is any procedural irregularity, the same is curable under Section 292B of the Act.

(3.) ON our direction, the Department has produced the files and we have perused the same. We have also perused Annex. R. -1 and the admission made by the appellants in para 15. Section 133A of the Act confers power upon the ITO to survey the business premises and to impound documents for further course of action. Certain statutory protections are provided mandating the officer to exercise such power and to do certain acts keeping in view the rights of a citizen under the provisions of the Act. In that view of the matter, we are in full agreement with the view taken by the learned single Judge allowing to retain the authenticated copies of impounded documents.