TaxTMI 
TaxTMI 
TaxTMI 
2004 (6) TMI 20
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....vant. Now after affidavit-in-opposition having been filed, it appears to me that the challenge against the search warrant and panchanama dated December 17, 1999, and notice dated December 20, 2000, have now become infructuous in view of the stand taken by the Revenue in the affidavit-in-opposition that the proceedings under section 158BC of the Income-tax Act, 1961 (hereinafter referred to as "the said Act"), as against the petitioner have been dropped. In view of dropping of the proceedings now the question remains as to whether seized books of account and documents of the writ petitioner are liable to be returned to the petitioner or not. Mr. Murarka, learned counsel appearing in support of this petition, submits that in view of dropping....
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....d documents are not permissible. He further points out that there is no disclosure as to whether there has been any authorisation after 2002. Therefore, as of today there is nothing on record to show that there is any valid authorisation for retention of the books of account. Even if any such order is passed, the same might have been done for their record purpose but nothing has been communicated. In the absence of communication such an order will be vitiated in terms of the Supreme Court judgment, as above. Mr. Ghose, learned senior counsel appearing on behalf of the Revenue, contends that under the provisions of the statute the Revenue is empowered to retain the books of account for any purpose or any proceedings. In this case, the Depar....
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....e premises where search and seizure were conducted. Accordingly, I hold the search of the partnership firm and seizure of its books of account on the strength of the warrant was wholly an illegal and unauthorised act. It appears from the stand taken in the affidavit-in-opposition that the search was really intended to be conducted against Sahsi Modi, K.R. Modi and K.R. International Pvt. Ltd. While conducting lawful searches if it is revealed that the books of account and document of a third party are recovered, then these can be utilised for the purpose of block assessment under section 158BD of the said Act. In this case originally proceedings under section 158BC were intended to be initiated, but necessary notice was served upon the fi....
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....s of this section, the period- (i) during which the assessment proceedings is stayed by an order or injunction of any court, or (ii) commencing from the day on which the Assessing Officer directs the assessee to get his accounts audited under sub-section (2A) of section 142 and ending on the day on which the assessee is required to furnish a report of such audit under that sub-section, shall be excluded. Explanation 2. - For the removal of doubts, it is hereby declared that the authorisation referred to in sub-section (1) shall be deemed to have been executed, - (a) in the case of search, on the conclusion of search as recorded in the last panchanama drawn in relation to any person in whose case the warrant of authorisation has been iss....