LAWS(P&H)-1972-11-13

COMMISSIONER OF INCOME-TAX Vs. RAMESH CHANDER

Decided On November 22, 1972
COMMISSIONER OF INCOME-TAX Appellant
V/S
RAMESH CHANDER Respondents

JUDGEMENT

(1.) THE facts giving rise to this Letters Patent Appeal may be briefly stated.

(2.) BALWANT Singh, traffic inspector of Punjab Police, along with some other police officials, was present about one mile from Kartarpur towards Jullundur on August 6, 1971, at 11-00 a m. He received secret information that an Ambassador car of white colour was coming from Jullundur side in which some smugglers were travelling. The information was that the smugglers had a big amount of currency notes with them and they were going to distribute the same illegally amongst the persons in the area of Police Station, Kartarpur, whose relations were living in England. Banke Lal and Hazara Singh, two persons mentioned in the first information report, also reached the spot. They were associated with the police party. In the meantime, car No. PNO-3070, Ambassador, white colour, came from Jullundur side. The car was stopped by Balwant Singh and his party. Three persons seated in the car were Ramesh Chander, Subash Chander and Radha Kishan. The car was driven by Charan Singh, driver. Ramesh Chander, writ-petitioner, was holding one bag in his one hand and another small bag was in his other hand. Balwant Singh asked him as to what was contained in the bags. Ramesh Chander disclosed that the big bag contained currency notes worth Rs. 1,61,008 and the small bag contained the business papers. Balwant Singh interrogated him in order to satisfy as to how he was in possession of such a big amount, but no satisfactory explanation could be given by Ramesh Chander. Balwant Singh then took the car and its occupants to the Police Station, Kartarpur, where he contacted the Income-tax Officer, Jullundur, on phone in order to find out whether Ramesh Chander was a man of such big means or not. He was informed that Ramesh Chander was not a man of substance. He then rang up the Commissioner of Income-tax, Patiala, and informed him that a sum of Rs. 1,61,000 had been recovered from Ramesh Chander. The details of the talk which took place between Balwant Singh, traffic inspector of the Punjab Police, and the Commissioner of Income-tax, Patiala, are not available, but whatever facts are on the record will be narrated at the relevant place.

(3.) SHRI Nathu Ram, Income-tax Officer, Jullundur, immediately visited the business premises of Ramesh Chander in order to sign the books of the firm. It may be pointed out at this stage that Ramesh Chander, writ-petitioner, is a partner of the firm, Messrs. Shiv Iron Traders, Tanda Road, Jullundur City, and the said firm comprises of the following partners : 1. Diwan Chand Aggarwal, father of Ramesh Chander 50% 2. Roshan Lal, brother of Ramesh Chander 25% 3. Ramesh Chander 25%