SPRING DALE EDUCATIONAL SOCIETY Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS is a petition for directing the respondents to release the assets, the books of account and the documents seized by the authorities of the IT Department in pursuance of search and seizure operation carried out on the premises of the petitioner on 21st May, 1998. The petitioner has also prayed for quashing of the order Annexure P10, dt. 11th June, 1999, vide which the CIT, Chandigarh, transferred its case from the Jt. CIT, Special Range II, Chandigarh, to the Jt. CIT, Special Range I, Chandigarh.

(2.) BEFORE adverting to the facts necessary for deciding the writ petition, we deem it proper to mention that after the issuance of notice of motion, the CIT, Chandigarh, vide order dt. 26th/28th July, 1999, cancelled the transfer of the petitioner's case and in pursuance of the order dt. 23rd Feb., 2000, passed by the Court, the FDRs seized during the search operation have been released by the Department and the only issue which survives for consideration is whether the continued retention of the books of account and other documents seized during the search operation is ultra vires to S. 132(8) of the IT Act, 1961 (for short, the 1961 Act).

(3.) THE petitioner has challenged the continued retention of the documents mainly on the ground of violation of S. 132(8) of the 1961 Act as interpreted by the Supreme Court in CIT & Ors. vs. Oriental Rubber Works (1984) 38 CTR (SC) 154 : (1984) 145 ITR 477 (SC) : TC 62R.172. It has averred that in terms of S. 132(8), the books of account and documents seized during search operation cannot be retained beyond a period of 180 days without fulfilling the conditions enumerated in that section and as no approval to the extended retention has been granted by the CIT and no communication to this effect has been sent to it, retention of the documents should be declared illegal.