Writ interference over document requisition under income-tax powers is refused where relevance and jurisdiction are shown.

Section 131 of the Income-tax Act empowers the revenue to call for production of documents for purposes of the Act, including effective inquiry after search and seizure, but the power must still be exercised with application of mind and relevance to the material sought. A writ court will not interfere where the statutory demand is connected to the pending inquiry and no manifest illegality or lack of jurisdiction is shown. On the stated facts, the notice was upheld and the challenge failed, allowing the income-tax proceedings to continue in accordance with law.

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Issues: Whether the notice issued under section 131 of the Income-tax Act, 1961, calling for production of documents was liable to be quashed and whether the writ petition deserved interference.

Analysis: The power under section 131 is wide and may be exercised for the purposes of the Act, including production of documents and related inquiry, but it must be used with application of mind and with regard to the relevance of the material sought. On the facts, there had been search and seizure, and the income-tax authorities sought the records for effective adjudication. The background of the dispute indicated that the writ proceedings were being used to impede the revenue inquiry rather than to correct any clear jurisdictional error.

Conclusion: The notice was upheld and the writ petition was rejected.

Final Conclusion: The challenge to the exercise of statutory power failed, and the proceedings before the income-tax authorities were permitted to continue in accordance with law.

Ratio Decidendi: A writ court will not interfere with a statutory demand for production of documents under section 131 where the power is exercised for the purposes of the Act, the documents are relevant to the inquiry, and no manifest illegality or lack of jurisdiction is shown.

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