MADHU GUPTA Vs. DIRECTOR OF INCOME-TAX

JUDGEMENT

(1.) In this writ petition, the petitioner has prayed for the following reliefs:-

(2.) Essentially, what the petitioner is seeking is a declaration that the warrant of search issued against the petitioner under Section 132 of the Income-tax Act, 1961 (herein after referred to as 'the said Act') was without the authority of law and, therefore, all proceedings pursuant to the search conducted at the residential premises of the petitioner at C-18, Sector-26, Noida, U.P. and pertaining to the petitioner ought to be declared as being illegal and the jewellery, articles and documents in lockers belonging to the petitioner be released to her unconditionally and the prohibitory orders in respect thereof be vacated.

(3.) From the affidavit filed on behalf of the respondent / revenue, it appears that an information had been received by the Deputy Director of the Income-tax (Investigation), Unit-IV (3), New Delhi from the Director General Central Excise Investigation, Delhi (DGCEI) in 2009 with regard to alleged unearthing of unaccounted sales and production as well as alleged clandestine removal / clearing of the products of M/s Dharampal Satyapal Group from their units at Noida, Gauhati and Agartala. The products comprised of various brands of paan masala, gutkha, such as Rajni Gandha and Tulsi. It is further revealed in the said affidavit on behalf of the revenue that a show cause notice had been issued by the DGCEI to the said M/s Dharampal Satyapal Group (DS Group) for evasion of Central Excise Duty. It is further indicated in the affidavit that on the basis of "information" received, "secret discreet inquiries" were carried out by the said Director of Income-tax and it was allegedly revealed that the DS Group was involved in sales which were not accounted for in the books and that such unaccounted income was being invested in agricultural and immovable properties and other assets in the names of group concerns of DS Group. The affidavit further reveals that during "discreet inquiries" the said Deputy Director of Income-tax allegedly got information that the undisclosed accounts of DS Groups were being kept at the residence of Smt. Madhu Gupta, widow of Late Shri R.N. Goela residing at C-18, Sector 26, Noida, U.P. It is further indicated in the affidavit that the said Deputy Director of Income-tax recorded a satisfaction note for the purposes of conducting a search under Section 132 (1) of the said Act on the DS Group. The satisfaction note, inter alia, indicated as under:-