ARUN KUMAR CHHAJAR Vs. COLLECTOR OF CUSTOMS PREVENTIVE

JUDGEMENT

(1.) The writ petitioner carries on business as a proprietor of M/s. Arun Automobilies. The facts briefly stated are as follows :-

(2.) On 21st July, 1989, the Customs Authorities conducted a search and seizure at the petitioner's business premises, where automobile parts and Indian currency of Rs. 3,10,000/- were seized. The petitioner was arrested and subsequently released on bail. A copy of a seizure report was forwarded to the Income Tax Authorities. On 28th July, 1989, the Directors (Investigation) of Income Tax Authorities issued notice under Section 131 of the Income-tax Act, 1961 (hereinafter referred to the Act) to the petitioner directing him to produce books of account for the year 1989-90, Bank's statement, Income Tax File number.

(3.) It appears from the records produced by the respondent authorities that pursuant to the notice under Section 131, the petitioner in fact produced the books of account and documents as directed before the Income Tax authorities. It also appears that the Income Tax authorities made enquiries as to the source of amounts standing in the books of account of the petitioner. The extract of the accounts in the records of the Income Tax authorities show for the year 1989 the following entry: - By cash with Customs Authorities Rs. 3,10,000.00 (Being cash seized by the Customs Authorities)