NAIN KUMARI SURI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The petitioner has approached this court praying for a writ, order or direction in the nature of certiorari quashing the notice dated January 21, 1982, issued by the Commissioner of Income-tax under Section 263 of the I.T. Act, and the order of the ITO dated November 20, 1981, passed under Section 132(5) of the Act.

(2.) A search was carried out, of the lockers belonging to the petitioner, in the Hindustan Commercial Bank, Birhana Road, Kanpur, and the Allahabad Bank. In the search, some jewellery and cash were seized. The ITO by his order dated November 20, 1981, passed under Section 132(5) of the Act directed that a sum of Rs. 43,650 be retained and the remaining cash and jewellery be released in favour of the petitioner. The amount retained was considered sufficient to cover the tax liability of the petitioner and the penalties leviable under Sections 271(1)(c) and 273. The petitioner has preferred detailed objection before the Commissioner under Section 132(11) of the Act which is still pending.

(3.) The Commissioner purporting to act under Section 263 of the Act issued a notice to the petitioner calling upon her to show cause as to why the aforesaid order under Section 132(5) be not modified as in his opinion the order was prejudicial to the interests of the Revenue. The petitioner filed an objection asserting that the proceedings under Section 263 were incompetent and should be dropped. The Commissioner, however, did not accede to the request of the petitioner and issued notice calling upon the petitioner to appear before him.