2003 (2) TMI 446

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....prietor thereof. The petitioner-firm deals in the business of importing, exporting and sales of "dry fish" in the State of Assam having its place of business at Jagiroad in the District of Morigaon. 3.. The petitioner was served with the notice dated October 8, 2002 (annexure H) under sub-section (1) of section 44 of the Act requiring petitioner No. 2, the proprietor of the firm to produce all the relevant books of account and other documents relating to the accounting years 2000-2001 and 2001-2002 before the Inspector of Taxes, Morigaon. The said notice was issued in order to ascertain the correctness of the records of transaction maintained by the petitioners in course of their business and to verify the amount of taxes paid. 4.. On....

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....re on the following grounds: (i) The search and seizure was carried out in the residential premises of the proprietor; (ii) it was carried out in the absence of the proprietor of the firm; (iii) no opportunity was given to him to show cause before seizure was made; and (iv) the seizure was carried out without authority of law. 7.. We may deal with the first two and fourth grounds together. Sub-section (3) of section 44 provides for seizure by an authority appointed under sub-section (1) of section 3, if such authority has reason to suspect that any dealer is likely to evade payment of any tax payable under the Act. The seizure undoubtedly has to be made with reasons to be recorded in writing. 8.. The seizure list (annexure....

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....ises in his absence is of no significance. 10.. With regard to the objection on the ground that no opportunity was given to the petitioner to explain before the seizure was effected, we may refer to the decision in Pooran Mal v. Director of Inspection (Investigation), Income-tax, New Delhi reported in [1974] 93 ITR 505 wherein the Supreme Court held as follows: ".....An assessee may be filing his returns from year to year regularly and his assessments may be also completed in due course over years. His books of account and documents have been duly checked from year to year and the assessing officer is also completely satisfied that the returns are correct. But it might so happen that this apparently honest assessee has invested large ....