CHOTUBHAI Vs. UNION OF INDIA

JUDGEMENT

(1.) Present petitioners, the two assessees residing at Mumbai and assessable under the Income-tax Act, 1961 at Mumbai have filed the present petition laying challenge to the following communication (Annexure-H) made to the addressee therein who is respondent No. 3 in the petition :

(2.) In addition, the petitioners seek a mandamus to the respondents No. 1 & 2 to issue a certificate under Section 68(2) of the Finance Act, 1997 by accepting the petitioners declaration under Section 64(1) of the Finance Act, 1997 which provides for a scheme popularly known as Voluntary Disclosure of Income Scheme, 1997 (hereinafter, VDIS for short).

(3.) The relevant facts in brief. Development Credit Bank Limited, a Banking Company having its registered office at 154, SVP Road, Dongri, Mumbai-400009 is a tax paying corporate entity. On 7.2.97 most of its branches in Mumbai and its outlying suburbs were searched under Section 132 of Income-tax Act, 1961 (hereinafter I.T.Act for short). Consequent to the search and seizure, in exercise of the powers conferred under Section 132(3) of the I.T.Act a prohibitory order was issued in respect of certain deposits with the Bank which includes the deposits made by the two petitioners. On 28.8.97, the bank addressed a communication to Mr. A.K. Batabayal, Member Investigation, CBDT, North Block, Parliament Street, New Delhi whereby staling the facts relating to the search and the preceding survey, the Bank sought for the following reliefs :