NEESA LEISURE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition under Article 226 of the Constitution of India, the petitioners seek the following substantive reliefs:

(2.) The facts of the case as stated in the petition are that the petitioner No.1 is a Company. The petitioner No.2 is a Civil Engineer from IIT Roorkee, holding a Diploma in Business Finance from ICFAI, who joined the Indian Administrative Service in the year 1985 and played a key role by implementing various policy initiatives in the Tourism, Industry, Energy and Infrastructure Sector in Gujarat, and held different positions in the Government of Gujarat during his 17 years tenure. He resigned in 2002 to join the Private Sector as a Senior Executive. Subsequently, he set up his own ventures in various sectors. Under his leadership, Neesa Group has converted itself into a well-diversified group involved in hospitality services; agro-biotechnology, steel casting and I. T. Services through innovative business planning and professional management. Neesa Leisure Limited, the petitioner No.1 herein, is mainly into hospitality business and the petitioner No.2 is the Chairman of the said Company.

(3.) A search action came to be conducted under section 132 of the Income Tax Act, 1962 (the Act) on 8.9.2010, 9.9.2010 and 11.9.2010 on various Companies of the Neesa Group. The proceedings covered around 20 locations/units of various group companies and statements at different locations of officials/directors came to be recorded. Back up of computers had been taken from twelve different locations. Seized materials mainly consisted of loose papers, files, documents, agreements, bills etc. Cash on hand of Rs.3.80 lakhs and approximately 1100 grams jewellery belonging to the wife of the petitioner No.2 came to be seized from their residence.