LAWS(ALL)-1993-2-70

SUDHIR KUMAR GUPTA Vs. DIRECTOR OF INVESTIGATION

Decided On February 04, 1993
SUDHIR KUMAR GUPTA Appellant
V/S
DIRECTOR OF INVESTIGATION, INCOME-TAX Respondents

JUDGEMENT

(1.) HEARD learned counsel for the parties. In view of the exchange of affidavits both the writ petitions are being disposed of by means of a common order in accordance with the rules of the court. Writ Petition No. 993 is by the persons who are said to be travelling along with the petitioners, Mahesh Kumar and others of Writ Petition No. 994 of 1992, against whom the warrant of authorisation was issued.

(2.) THE petitioners in Writ Petition No. 993 of 1992 have sought for quashing the entire search and seizure operation carried on by the officers of the Income-tax Department, and further directing the respondents to release all the cash seized from the vehicle on September 2, 1992, as mentioned in the panchnama (annexure II to the petition) and also not to proceed further against the petitioners under Section 132 of the Income-tax Act, 1961. In Writ Petition No. 994 of 1992, the petitioners have sought for quashing the entire search and seizure dated September 2, 1992, as the same was done without fulfilling the condition precedent for the exercise of power under Section 132A of the Income-tax Act, 1961, and further directing the authorities to release the cash seized on September 2, 1992, and further not proceeding against the petitioners under Section 132(5) of the Act.

(3.) THE further contention on behalf of the petitioners is that the search and seizure made by the respondent-authorities is illegal as there was no material existing on the records before issuance of the warrant of authorisation in the present case. This fact has been vehemently urged on behalf of learned counsel for the petitioners. Reliance has been placed on Manju Tandon v. T.N. Kapoor, Dy. Superintendent of Police [1978] 115 ITR 473 (All), in which it was held (headnote) ;