HARBHAJAN SINGH CHADHA Vs. DIRECTOR OF INCOME TAX

JUDGEMENT

(1.) The petitioners have filed the present writ petition praying for the quashing of the search and seizure operations initiated against the petitioners by the respondents under Section 132 of the Income Tax Act (hereinafter referred to as the Act) in consequence of a search warrant, which was not issued in the name of the petitioners. The petitioners have also prayed that all the properties, cash, jewellery and other movable properties including books of account and other documents so seized from the petitioners premises including bank lockers should be released.

(2.) The facts leading to the filing of the writ petition is, that a warrant of authorization dated 31st January, 2012 under Section 132 of the Act was issued by the Director of Income Tax, Intelligence New Delhi, respondent no.1. This warrant of authorization under Section 132 of the Act was in the name of Gurdeep Singh Chaddha (Ponty), Rajendra Singh Chaddha, Hardeep Singh Chaddha, all sons of Late Sri Kulwant Singh and brother of petitioner no.1 as well as in the name of Ginni Chaddha, S/o Sri Narendra Singh Chaddha, brother of petitioner no.1 and M/s G.S. HUF. Based on this warrant of authorization, a search and seizure operation was conducted on 1st February, 2012 by the Assistant Director of Income Tax, Intelligence and Criminal Investigation ND, respondent no.2 on 1st February, 2012 at premises no.455, Civil Lines, Moradabad. Petitioner no.1 is the father of petitioner nos.2 and 3. Petitioner nos.4, 5 and 6 are wives of petitioner nos.1, 2 and 3. Petitioner no.7 is the son of petitioner no.2 and petitioner no.8 is the wife of petitioner no.7. On the basis of the search conducted on 1st February, 2012 and the materials seized, the respondent issued a letter to the banks on the basis of which the bank accounts and lockers were seized/attached on 2nd February, 2012 based upon consequential warrant of authorisation under Section 132 of the Act dated 1st February, 2012 issued by the Additional Director.

(3.) It is alleged that the petitioners are jointly residing on the 1st floor of the building situate at House No.455, Civil Lines, Moradabad. The petitioners further contend that the kitchen of the petitioners is common. The petitioners contend that plot No.455, Civil Lines, Moradabad was purchased jointly in the name of six persons, namely, Late Sri Gurbachan Singh (father of petitioner no.1), Late Kulwant Singh, Harbhajan Singh (petitioner no.1), Late Surinder Singh, Late Gurbax Singh and Surjeet Singh, who are sons of Late Gurbachan Singh. Over a period of time a residential house was constructed and, it is alleged, that the petitioners started residing on the first floor. Other portions of the residential building was occupied by other co-owners.