AUTO AND METAL ENGINEERINGS Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS judgment will dispose of Civil Writ Petitions Nos. 6225, 6226, 6228 to 6234 and 6236 of 1974, which involved same questions of law and fact. In the judgment, the facts are being given from C. W. P. No. 6230 of 1974.

(2.) THE petitioner is a partnership firm and is running a factory in Faridabad. It is registered under the Indian Partnership Act as well as the I. T. Act. It consists of two partners, namely, Smt. Sunanda Rani Jain, wife of V. K. Jain, and Smt. Karuna Jain, wife of S. K. Jain. Its fubabcuak year is from April to March each year. There is another firm, viz. , M/s. Auto Agro Industries. It is also a registered partnership concern consisting of V. K. Jain, S. K. Jain, Smt. Swarna Jain, wife of O. P. Jain, and Smt. Santosh Jain, wife of late S. P. Jain. Both the firms are income-tax assessees.

(3.) ON April 24, 1971, the premises of the petitioner were raided by the income-tax authorities. During the course of search, they seized all books of account, the documents including challans, receipt books, inspection reports, correspondence files, etc. Aggrieved against the raids, searches and seizure, Smt. Sunanda Rani, partner of the petitioner, filed a writ petition (C. W. P. No. 744 of 1971) in the Delhi High Court. V. K. Jain, partner of M/s. Auto Agro Industries and Smt. Karuna Jain also filed two writ petitions (C. W. P. Nos. 741 and 745 of 1971, respectively) for the same purpose. They also filed applications for stay of further proceedings along with the writ petitions. The petitions were admitted and further proceedings were stayed by the Motion Bench.