DHEER SINGH Vs. ASST DIRECTOR OF INCOME TAX

JUDGEMENT

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

(2.) THE petitioners' case is that a search under Section 132 of the Income-tax Act, 1961 (hereinafter referred to us "the Act"), was conducted by the respondents on their premises on January 12, 1995. Several bank deposit receipts belonging to the petitioners were seized. A copy of the seizure memo has been annexed with the writ petition as annexure "2". It has been stated in the writ petition that no order under Section 132 has since been made. It is alleged that respondent No. 1 has illegally withdrawn a sum of Rs. 45,500 from the Savings Bank Account No. 19538 standing in the joint names of the petitioners with the Punjab National Bank, Eastern Kutchery Road, Meerut, after threatening the bank manager and that respondent No. 1 was also trying to encash the fixed deposits standing in the names of the petitioners, either individually or in the joint names. For this purpose, a letter dated March 2, 1995, a copy of which is annexure "4" to the writ petition, is said to have been addressed by respondent No. 1 to the bank. THE bank has informed the petitioners that it is under acute pressure from the Income-tax Department to make the payment of the deposit receipt certificates. A copy of the bank's letter has been annexed as annexure "6" to the writ petition. According to the petitioners, respondent No. 1 has no jurisdiction to withdraw the amount from the savings bank account or encash the deposit receipts. THErefore, this writ petition has been filed for the reliefs aforesaid.

(3.) IN the counter-affidavit filed on behalf of respondents Nos. 1 and 2, it has been admitted that the respondents attempted to get the fixed deposit receipts encashed, but did not pursue their attempts after the interim order of this court. IN para 19 of the counter-affidavit, it is stated that the money lying in the form of FDRs and in other bank accounts was to be cashed in pursuance of the search warrant issued by the Deputy Director of INcome-tax (INvestigation), but the same is not being encashed in compliance with the interim order of this court dated March 29, 1995, and that a bank draft No. 026912 dated March 29, 1995, for Rs. 2,66,734 issued by the Union Bank of INdia, Delhi Road, Meerut, in favour of the Commissioner of INcome-tax, Meerut, was not honoured by the bank.