RAMJI DASS OM PARKASH Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) THE petitioner-firm carries on business of commission agents and retailers in food-grains at Rama Mandi, District Bhatinda. The firm submitted its returns of income on the basis of which the assessments were completed up to the assessment year 1968-69, For the assessment year 1969-70 the firm submitted its return on July 15,1969, and the assessment proceedings are still pending. The Income-tax Officer, Bhatinda, respondent No. V, received, a complaint regarding concealment of income and tax evasion indulged in by the petitioner-firm and on receipt of the complaint, he authorised Shri Nand Singh Kanwal, Inspector of Income-tax, under Section 133a (1) (b) of the Income-tax, 1961 (hereinafter called "the Act "), to enter the business premises occupied by the petitioner-firm and to inspect the books of account and, if necessary, to place marks of identification thereon, Shri Nand Singh visited the shop of the petitioner-firm on September 29, 1959, and, while inspecting the books of account, he came across Roznamcha Bahi containing a number of Uchanti entries which, though incorporated in the Roznamcha Bahi, were not taken into other books of account like cash book and ledger. The Roznamcha Bahi was signed by Nand Singh, who also recorded the statement of Shri Parkash Chand, a partner of the firm, who admitted the Uchanti nature of the entries. On September 27, 1969, the petitioner-firm had been issued a notice under Section 143 (2) of the Income-tax Act for October 3, 1969, and on that day Shri Parkash Chand, partner of the petitioner-firm, appeared before respondent No. 1 along with Shri R. K. Goel, advocate, and produced books of account relating to the period from April 1,1968, to March 31, 1969. Respondent No. 1 impounded these books of account by passing the following order : " The books of account of the assessee contain some fictitious entries (account period April 1, 1968, to March 31, 1969 ). A number of entries in the Roznamcha do not occur in the other books of the assessee. The assessee is alleged to be carrying on Uchanti business. The books, if returned, are not likely to be produced again. Hence, the books of account are being impounded under Section 131 (3 ). "

(2.) THEREAFTER, he recorded the presence of Shri Parkash Chand and Shri R. K. Goel, advocate, and passed the following order : "account produced as per order under Section 131 (3 ). Nakal has not been produced. The same would be produced tomorrow. Statement of Shri Parkash Chand has been recorded and placed on record. Nakal to be produced on October 1, 1969. "

(3.) THIS order is signed by respondent No. 1 as well as Parkash Chand, the assessee. The allegation of the petitioner-firm in the writ petition is that no reasons in support of the order impounding were recorded on October 3, 1969, and the order that now exists on the order sheet was written after the petition was filed. The learned counsel for the petitioner, for this submission, relies on the order under Section 131 (3) of the Income-tax Act delivered to the petitioner-firm which is in the following terms : " Under powers conferred upon me under Section 131 (3) of the Income-tax Act, 1961, I hereby impound and retain in my custody the following books of accounts which have been produced before me during the course of assessment proceedings. "