METAL FITTINGS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The short question raised in this petition is whether the books of account seized in the course of search and seizure can be retained by the income tax department after the expiry of 180 days under section 132(8) of the Income Tax Act, 1961 (the Act).

(2.) The petitioner company, Metal Fittings (P) Ltd., carries on business at Okhla Industrial Estate. Its registered office is at Maya Puri. A search warrant was issued on 27-7-1981. Its premises were searched at both places. The books of account were seized. The department took them away. This happened between 6-8-81 and 18-8-81. We will take 18-8-81 as the date of seizure for computation of 180 days. Now 180 days computed from 18-8-81 expired on 14-2-1982. On 26-2-1982 the petitioner asked the department to return the books as the period of 180 days prescribed in section 132(8) of the Act had expired. The resndents refused to return the books. On this the petitioner filed the present petition on 22-3-19S2 under Article 226.

(3.) We now have it from the department that on 8-3-82 the Income Tax Officer recorded the reasons for retaining the books beyond the period of 180 days which had already expired by then. He sent his reasozns to the Inspecting Assistant Commissioner. On 12-3-1982 the Inspecting Assistant Commissioner referred the matter to the Commissioner. The commissioner gave his approval for retention of the account books on 25-3-82. This happened after the petition was filed.