JAWAHAR LAL RASTOGI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS petition under Article 226 of the Constitution is directed against a search and seizure carried out under Section 132 of the Income-tax Act, 1961 (hereafter referred to as "the Act"). Jawahar Lal Rastogi is the petitioner. His father, Inder Prasad, carried on money-lending business with headquarters at Lucknow. Inder Prasad died in the year 1953. The petitioner became the karta of the Hindu undivided family. The petitioner continued his father's money-lending business. The petitioner is also a partner in a number of industrial concerns. The firms, Rohtas Financiers and Rohtas Pharmaceutical Distributors, have their head offices at Hazratganj, Lucknow, while Messrs. J. E. N. Engineering Corporation has its factory and office at Aishbagh, Lucknow. On September 14, 1964, the Income-tax Officer, A-Ward, Lucknow, directed the petitioner to furnish certain statements. The petitioner was required to furnish the necessary information within 10 days. On September 21, 1964, a number of Income-tax Officers raided the petitioner's residence and premises where the various industries are carried on. These officers searched for documents and goods kept at these places. The search was continued on September 22, 1964. The Income-tax Officers carried away with them documents found by them at these places. These officers also prepared inventories of ornaments and other goods kept at these places. The documents seized in September, 1964, remained with the income-tax authorities till May, 1966, when the writ petition was filed. According to the petitioner, the search and seizure are illegal. He has, therefore, requested that these proceedings be quashed, and the opposite parties be directed to return to the petitioner the books and registers seized.

(2.) SEARCH and seizure are admitted by the opposite parties. They conceded that they carried away a large number of documents from the petitioner's house and business premises. It is maintained that the search and seizure are legal.

(3.) SECTION 132 of the Act states: