1970 (3) TMI 11

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t No. 1, received, a complaint regarding concealment of income and tax evasion indulged in by the petitioner-firm and on receipt of the complaint, he authorised Shri Nand Singh Kanwal, Inspector of Income-tax, under section 133A(1)(b) of the Income-tax Act, 1961 (hereinafter called " the Act "), to enter the business premises occupied by the petitioner-firm and to inspect the books of account and, if necessary, to place marks of identification thereon. Shri Nand Singh visited the shop of the petitioner-firm on September 29, 1959, and, while inspecting the books of account, he came across Roznamcha Bahi containing a number of Uchanti entries which, though incorporated in the Roznamcha Bahi, were not taken into other books of account like cas....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n of the petitioner-firm in the writ petition is that no reasons in support of the order impounding were recorded on October 3, 1969, and the order that now exists on the order sheet was written after the petition was filed. The learned counsel for the petitioner, for this submission, relies on the order under section 131(3) of the Income-tax Act delivered to the petitioner-firm which is in the following terms : " Under powers conferred upon me under section 131(3) of the Income-tax Act, 1961, I hereby impound and retain in my custody the following books of accounts which have been produced before me during the course of assessment proceedings. " Then follows the list of account books impounded and retained by respondent No. 1. Fro....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ers v. S. S. Seth, Income-tax Officer, wherein the provisions of proviso (a) to section 37(2) of the Income-tax Act, 1922, were considered. That section corresponded to section 131(3) of the Income-tax Act, 1961. In that case, the Income-tax Officer had summoned the books of account from the Secretary, Income-tax Investigation Commission, and, after obtaining them, retained them in his possession without making any order impounding them and thus without recording any reasons for impounding the same. All he did was that he made a subsequent report for obtaining the approval of the Commissioner for impounding the books of account. The learned judges held that the provision contained in sub-section (2) of section 37 of the 1922 Act for recordi....