SRIRAM JAISWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner carried on a business in manufacture and sale of carpets as sole proprietor of the concern, Sriram Carpet Industries, Gopiganj, district Varanasi. A search and seizure operation was conducted on July 22, 23, 1987, at the principal place of business, Gopiganj, district Varanasi, at the shopping complex, Maldahia, and at the residential premises, D-64/143, Shastri Nagar, Sigra, Varanasi, of the petitioner. During the search and seizure operation, gold ornaments, silver ornaments, cash, etc., were seized under Section 132(1) of the Income-tax Act, 1961 (briefly "the Act") and a restraint order was passed under Section 132(3) of the Act, for want of verification in respect of the following assets : <FRM>JUDGEMENT_261_ITR176_1989Html1.htm</FRM>

(2.) THEREAFTER, the Income-tax Officer, Bhadohi, Varanasi, passed an order under Section 132(5) determining the total tax liability for the assessment years 1981-82, 1983-84, 1984-85, 1987-88 and 1988-89 at Rs. 25,85,988. The value of all the seized assets was determined at Rs. 7,30,683 in the order passed under Section 132(5) of the Act and as the total tax liability aggregating to Rs. 25,85,988 for the aforesaid years exceeded the total value of the seized assets, the Income-tax Officer ordered retention of the entire seized assets.

(3.) THE submissions of Sri V.B. Upadhyaya, learned counsel for the petitioner, are :