RAVI IRON INDUSTRIES Vs. DIRECTOR OF INVESTIGATION

JUDGEMENT

(1.) The petitioner, Ravi Iron Industries, is a proprietorship concern which has challenged the legality and validity of the search conducted by the Income-tax Department at the factory of the petitioner on February 16, 2000, and has prayed for a writ, order or direction in the nature of certiorari quashing the search memo/punchanama dated February 26, 2000, and all the proceedings pursuant to and consequential to the said search. A writ in the nature of mandamus directing the respondents not to initiate any proceeding against the petitioner, consequent upon or arising out of the above search has also been sought for.

(2.) The petitioner is engaged in the manufacture of C. I. pipe fittings and main-holds. The petitioner is also a registered licensee under the Central Excise Act and has to maintain detailed records as prescribed under the said Act and the rules concerning purchases, utilisation and stock of raw material, production, clearance and stock of finished goods, etc. These stocks and books of account are being checked by the officials of the central excise department from time to time, including by making surprise visits to the factory.

(3.) The petitioner's factory was set up in the year 1971 and has been an income-tax assessee and has indisputably been filing income-tax returns regularly, and the assessments are up to date and have been completed up to the assessment year 1998-99. It has been averred in the writ petition, which has not been denied, that the petitioner has never refused to produce the records or documents or the books of account whenever asked for by the Department during the assessment proceedings and there are no outstanding income-tax dues against the petitioner.