2023 (4) TMI 394 - HC - Income Tax

Court directs release of seized documents from locker to petitioner, outlines procedure for notification and attendance.

The court issued specific directions for the release of seized documents from locker No. L-322 related to the petitioner. The statutory authority was ... Search and seizure - release of seized documents - consent of locker owner - statutory authority's power to release seized material - procedural notice for releaseRelease of seized documents - statutory authority's power to release seized material - procedural notice for release - consent of locker owner - Release to the petitioner of documents seized from locker No. L-322 which pertain to the petitioner. - HELD THAT: - The High Court directed that the concerned statutory authority shall issue notice to the petitioner and to the locker-holder, Mr Ashok Kumar, to attend a proceeding convened for the purpose of releasing the seized documents found in locker No. L-322 that concern the petitioner. The respondents (revenue) indicated no objection to release insofar as assessments have been completed against both the searched person and the petitioner, but noted that the locker was maintained by Mr Ashok Kumar and his consent would ordinarily be necessary. To reconcile these positions, the Court ordered that the authority proceed with a notice-based meeting; the petitioner must be represented by an authorized person at that proceeding. Where Mr Ashok Kumar, despite being served, does not join the proceeding, the statutory authority is empowered to release and hand over to the petitioner's authorised representative those documents which concern the petitioner. The authority was directed to complete the exercise within two weeks of receipt of the order. [Paras 4, 5]Notice to petitioner and locker-holder to be issued; if locker-holder fails to join, authority to release documents concerning the petitioner to its authorised representative; exercise to be completed within two weeks.Final Conclusion: The petition is disposed by directing the concerned statutory authority to convene a proceeding (after issuing notice to the petitioner and the locker-holder) for release of documents from locker No. L-322 that pertain to the petitioner, and to hand over those documents to the petitioner's authorised representative if the locker-holder does not participate; the exercise to be completed within two weeks. Issues:Release of seized documents from lockers post-assessment order.Analysis:The petitioner's main grievance was that despite assessment orders being passed against both the searched person and the petitioner, the seized documents had not been released. A search operation under Section 132 of the Income Tax Act was conducted on Mr. Ashok Kumar, during which lockers maintained by him at a specific location were searched. The lockers, specifically L-289 and L-322, were found to contain documents related to the petitioner. The respondents/revenue had no objection to releasing the documents seized from locker No. L-322, but they highlighted the necessity of Mr. Ashok Kumar's consent since the locker was maintained by him.The court disposed of the petition by issuing specific directions. The statutory authority was instructed to notify both the petitioner and Mr. Ashok Kumar to attend a proceeding for the release of seized documents from locker No. L-322 related to the petitioner. The purpose of the proceeding was clearly outlined, and the petitioner was required to be represented by an authorized person. If Mr. Ashok Kumar failed to participate in the proceeding after being served notice, the statutory authority was directed to release the documents to the petitioner's authorized representative. The entire process was to be completed within two weeks of receiving the court's order, with instructions for the parties to act based on the digitally signed copy of the order.