SAMPATLAL AND SONS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE petitioner is a partnership firm and an assessee under the I.T. Act, 1961. THE petitioner's business premises and the residential premises of its partners were searched under Section 132 of the Act on May 12, 1981. Certain books of account and documents were seized on that date. By this petition, which was filed on March 22, 1983, the petitioner prays for a direction to the respondents for the return of the books of account and documents seized from the business premises of the petitioner and the residential premises of its partners. THE petition is based essentially on the ground that no approval was given by the Commissioner to the retention of the books of account and documents seized within 180 days from the date of the seizure as required by Section 132(8) of the Act. Notice for admission of the petition was issued. Return has been filed. THE petition is admitted and heard on merits.

(2.) THE file relating to the approval was produced before us by Shri J. P. Sanghi, learned counsel appearing for the respondents. According to the learned counsel, some communication was first sent by the ITO, C-Ward, Katni, but that is not traceable. THE first communication that we get is the letter dated April 28, 1982 of the ITO, Katni, to the Commissioner for approval giving reasons for retention of the books of account and documents. No approval appears to have been given by the Commissioner in this letter. THE ITO again wrote on March 11, 1983, for approval for retention of the books of account and other documents seized up to June 30, 1984, On this communication, the Commissioner gave his approval on March 28, 1983, This approval was communicated to the petitioner. As already noticed, the seizure was made on May 12, 1981, and 180 days from seizure expired on November 8, 1981. It is on these facts that we have to decide whether the retention of the books of account and documents seized is illegal or not.

(3.) THE petition is allowed. We direct the respondents to return the books of account and documents seized from the business premises of the petitioner and residential premises of its partners. THE petitioner will get costs of this petition. Counsel's fee Rs. 200, if certified.