HARBANSLAL GUPTA Vs. UNION OF INDIA

JUDGEMENT

(1.) THE order passed in this case shall also decide Writ Petition No. 654 of 1991 (Smt. Sudarshan Gupta v. Union of India) which is filed by the members of the family of the petitioner in relation to the orders of the authorities under the Income-tax Act and the Central Excise Act pursuant to the search and seizure conducted in the residential-cum-commercial premises of the petitioner.

(2.) THE facts, briefly, are that the petitioner's office-cum-residence at Gwalior was searched with the aid of the police by the Income-tax Department and Central Excise Department on March 22, 1974. In the course of the search, certain cash, gold and silver including" hundi khokas were seized and the panchanama for the same was prepared, a copy of which is on record as exhibit P-1. In those seized items, there were articles and valuables which, according to the petitioner, belonged to his mother, Bachandevi, and the wife, Smt. Sudarshan Gupta.

(3.) THE Department went up in appeal to the Income-tax Appellate Tribunal. THE assessees also went in appeal in respect of part of his rejected claim. THE appeals were decided by a common order. THE appeals preferred by the petitioners were allowed and those filed by the Department were dismissed. It was held that the items seized could not be added to the income of Harbanslal Gupta. It was held that Smt. Sudarshan Gupta was not the benamidar of Harbanslal Gupta. THE applications for reference of certain questions of law under Section 256(1) of the Act were filed in the Tribunal which were also rejected. THE Department went up to the High Court seeking a reference under Section 256(2) of the Act which we have rejected by our orders passed in M. C. C. No. 222 of 1991 (CIT v. Harbanslal Gupta [1997] 224 ITR 715) decided today along with the other M. C. C. Nos. 220, 221, 192 to 199 and 280, all of 1991. As a result of the orders of rejection passed in those reference applications, the orders passed by the Income-tax Appellate Tribunal have attained finality, in respect of all the petitioners in these two petitions and in relation to different assessment periods in question. On the above facts, the petitioners in these cases claim a writ for quashing the prohibitory order, issued by the Income-tax Department to the Central Excise authorities under Section 226(3) of the Act and return of all their seized valuables, cash and hundis as per order passed by the Income-tax Appellate Tribunal.