Court Orders Return of Impounded Books, Resolving Dispute

The court directed the return of impounded books of account to the petitioner by a specified date, resolving the issue of impounding and retention of books beyond a reasonable period. The petitioner's challenge to the impounding order and non-supply of copies was not successful due to failure to challenge the impounding order separately. Despite disputes, the impounding of books under section 131 was deemed not per se illegal, as they were impounded after the survey. The court refrained from extensive legal analysis and ordered the return of the books, granting relief to the petitioner in this regard.

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Issues:
1. Impounding of books of account during a survey under section 133A of the Income-tax Act, 1961.
2. Non-supply of certified copies of statements and inventory list.
3. Appeal against the impounding order and request for certified copies.
4. Challenge to the impounding order and non-supply of copies.
5. Legal validity of impounding books of account before completion of assessment.
6. Interpretation of sections 131, 132, and 133A of the Income-tax Act.

Analysis:
1. The petitioner's premises were surveyed under section 133A of the Income-tax Act, followed by a notice under section 131 to produce books of account. The petitioner requested copies of statements and inventory lists, which were not provided due to an alleged failure to make a proper application with fees. The petitioner had previously challenged the assessment order and impounding of books in a writ petition, which was disposed of without granting relief regarding the impounding and non-supply of copies. The court noted the petitioner's failure to challenge the impounding order separately, barring the filing of a new petition without specific liberty to do so.

2. Despite factual disputes, it was established that the petitioner's premises were surveyed, statements recorded, and some inventory taken. The Department contended that the inventory was incomplete, leading to impounding of books until assessment completion for years other than 1998-99. The petitioner cited a Rajasthan High Court decision stating that impounding during a survey is impermissible. However, in this case, books were not impounded during the survey but later under section 131, making the impounding not per se illegal.

3. The court refrained from an in-depth legal discussion on sections 131, 132, and 133A, directing the return of impounded books to the petitioner by a specified date. Despite the Assessing Officer's authority to retain books with permission, the court found no justification for indefinite retention, ordering their return by a set deadline. Consequently, the writ petition was allowed to the extent of directing the return of the books of account to the petitioner by a specified date, thereby resolving the issue of impounding and retention of books beyond a reasonable period.

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