SELF KNITTING WORKS Vs. UNION OF INDIA

JUDGEMENT

(1.) SHORT , 'the Act') at different premises of the petitioners, was illegal.

(2.) CASE of the petitioners is that they are 100 per cent export -oriented units or partners/directors of the units. Respondent No. 5, who was at relevant time Asstt. Director of IT (Inv.) III, Ludhiana, was hostile to the petitioners on not on account of any material, which may lead to recording of statutory satisfaction prior to search. Subsequently, material was collected to justify search, which could not be relevant for the satisfaction requisite for conducting the search. It has been pointed out, in the course of hearing, that a criminal case was registered against respondent No. 5 and investigation having been carried out by the CBI, respondent No. 5 has been sent up for trial, which is pending in the CBI Court at Patiala.

(3.) IN the reply filed jointly by respondent Nos. 3 to 5, reference is made to an earlier search in the case of S.K. Bhatia were involved in large scale exports to Russia. They were reducing taxable profits by showing bogus purchases from dummy firms floated in the names of their low paid employees. Respondent No. 3 recorded satisfaction before issuing Department against the petitioners before the search was ordered.