M L ENTERPRISES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN these three writ applications which are based on identical foundational facts involving similar questions of law and reliefs claimed, the prayer is for a direction upon the respondents to forthwith release the books of account pertaining to the transactions of the petitioner firms which had been impounded on August 24, 1992, under the provisions of Section 131(3) of the INcome-tax Act, 1961 (hereinafter in short "the Act" only).

(2.) THE petitioners are partnership firms registered under the provisions of the Act and are engaged in the business of sale and purchase of various agricultural produce either of their own account or as commission agents.

(3.) ON a plain reading of the aforesaid provision, it is amply clear that for the reasons recorded by the concerned income-tax authority he can retain in his custody the books of account impounded by him for such period as he thinks fit provided for retaining the same for a period exceeding fifteen days he has to obtain approval of the authorities mentioned in Clause (b) of the proviso to Sub-section (3) of Section 131 as quoted above. It does not, on the face of it, provide that either the reasons so recorded or the order of approval has to be communicated to the person concerned.