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2003 (9) TMI 49
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....) (respondent No. 3), entered into the office of the Hotel Dynasty and inquired about the petitioner. The said persons identified themselves as income-tax officials and stated that they had come to survey the premises under section 133A of the Income-tax Act, 1961 (in short as "the Act"). The officers thereafter entered into the office of Hotel Dynasty, Mohijuli Tea Company Pvt. Limited situated in the same premises and collected records of documents, vouchers books of account from the premises. The above survey continued up to 11.30 p.m. In the process of survey, the income-tax officials collected a large number of files, documents, books of account, vouchers, etc., from the premises of Hotel Dynasty, Mohijuli Tea. Company Pvt. Limited, Dy....
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....3A by issuing notice under section 131 of the Act and thereafter, impounded the documents under section 131(3) of the Act. According to counsel, the books of account, documents and other papers were produced during the course of survey. They were removed in a separate room which was kept under lock and key and also a paper seal was put in the entry to the room. Therefore, the above action of the respondent amounts to impounding the documents. Counsel further contended that the issue of notice under section 131 of the Act is only a pretext to camouflage the illegal action conducted by the respondent while carrying out the survey under section 133A. Mr. Bhuyan, learned counsel for the respondents, on the other hand, contended that the docu....
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....ner. The respondents in paragraph 5 of the affidavit in opposition, while replying to paragraph 4 of the affidavit filed by the petitioner have stated that some of the books of account, paper documents found in the course of the survey contained some incriminating documents and, therefore, Mr. D. Chertry, the manager (P & A) was requested to keep the documents in safe custody in view of the very sensitive nature of the documents. As Mr. Cherty failed to contact the petitioner he suggested that the materials be kept in the room of Mr. S. Agarwal, manager, accounts. It was also stated that after the concerned room was closed by Mr. Cherty paper pasting was made and the key was given by him willingly and that he wanted to ensure that there ....
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.... it is not disputed that the documents, books of account, files, etc., were removed from the place of survey, kept in a separate room under lock and key and also a paper seal was put on the entry to the room. This fact is also not disputed by the respondent in the affidavit in opposition as enumerated hereinabove. It is also noticed that the key to the room was taken by the income-tax authority after putting the paper seal. Therefore, in my considered opinion, the documents were impounded in the course of the survey conducted under section 133A under which the respondent has no authority to impound the documents. Sub-section (4) of section 133A of the Act clearly prohibits the income-tax authorities from taking out the documents from the....
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....o co-operate in terms of sub-section (6) of the section. Therefore, in that case the order to impound the documents under section 131(3) of the Act was turned down and is in violation of the provisions of section 133A. Mr. U. Bhuyan, learned counsel for the respondents, has taken the court to the case of Pooran Mal v. Director of Inspection (Investigation) [1974] 93 ITR 505 (SC), wherein it has been held that: "Even though a search and seizure may be in contravention of section 132 of the Income-tax Act, 1961, still the material obtained thereby is liable to be used subject to law before the income-tax authorities against the person from whose custody it is seized and, therefore, no writ of prohibition in restraint of such use can be gra....
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....he books of account, papers and documents marked HD 1 to HD 196, RR 1 to RR 14, MTC 1 to MTC 53 and DW 1 to DW 42 found during the course of survey under section 133A of the Income-tax Act, 1961, on November 3, 1997, in the office premises of Hotel Dynasty, SS Road, Laktokia, Guwahati, which were asked to be produced under section 131 of the Income-tax Act, 1961, on November 4, 1997, are hereby impounded under section 131(3) of the Income-tax Act, 1961." From the above the order impounding of documents has not disclosed any reason whatsoever as required under the proviso to sub-section (3)(a) of section 131 of the Act. For the aforesaid reason, I am of the view that the impounding of the documents purported to have been made under sec....