SHOBHA SENGAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this petition under article 226 of the Constitution of India, the petitioner prays for the following reliefs :

(2.) THE petitioner's case is that during the period July 25, 1986, to August 6, 1986, a search and seizure operation was carried out by the income-tax authorities at the residential premises of the petitioner and her husband, Sri Kripa Shanker Sengar. During the course of the said search several items of property were seized. Amongst them were two National Savings Certificates bearing Nos. 092455 and 092456 of Rs. 5,000 each that were purchased by the petitioner on March 5, 1986. THE petitioner claimed the same belong to her and have been found to belong to her. In addition jewellery valued at Rs. 1,74,788 was also seized which the petitioner claimed to belong to her and was held to be so. THE petitioner's case is that her assessments for the relevant assessment years, i.e., 1986-87 and 1987-88 were settled on March 27, 1989 and March 28, 1989 respectively. THE assessment for the assessment year 1986-87 dealt with the National Savings Certificates while the assessment for the assessment year 1987-88 dealt with the jewellery. She claims that the resultant demand for the two years has been paid off and yet the aforesaid items of her property have not been returned.

(3.) THE contention on behalf of the petitioner is that the property in question having been seized during a search and seizure operation against her, the same has to be dealt with in terms of the provisions of Section 132(5) and Section 132B of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), and that since the dues assessed on the petitioner had already been cleared the property had to be returned to her and their retention by the respondents is illegal. THE case of the respondents, on the other hand, is what has been stated in the Commissioner's order under challenge and reliance is placed on the provisions of Section 159 of the Act which deals with the liability of a legal representative.