MARUTI MILLS PRIVATE LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE instant writ petition has been filed for quashing the impugned order dated December 22, 1999 (annexure-2), impounding the books of account and other documents : for quashing the summons under Section 131 dated December 21, 1999 (annexure 1); and for issuing directions to the respondents to release the entire books of account and other documents impounded by them.

(2.) THE facts and circumstances giving rise to this case are that a survey was conducted under Section 133A of the Income-tax Act, 1961 (for short, "the Act"), at the business premises of the petitioner on December 21, 1999, and a list of documents was prepared. On the same date, i.e., on December 21, 1999, summons under Section 131 of the Act was issued to the director of the petitioner-company to produce the books of account and other documents for verification of the entries on December 22, 1999. In pursuance of the summons issued under Section 131(1) of the Act, the director of the petitioner-company appeared along with the books of account and other documents on December 22, 1999, and the same had been impounded by the authority on the said date. Hence, this petition.

(3.) SECTION 133A of the Act empowers the authority to conduct the survey. Sub-section (4) of the said section provides that the income-tax authority acting under the provisions of the said section "shall, on no account, remove or cause to be removed from the place wherein he has entered, any books of account or other documents or any cash, stock or other valuable article and thing." Thus, the said Sub-section (4) of the said section puts an embargo on the powers of the authority to remove or cause to be removed from the place where he has entered, the books of account and other documents, etc.