- (1.) By this petition under articles 226 and 227 of the Constitution of India, M/s. Pooran Mal & Sons, petitioner No. 1, and Shri Gopal Das, claiming to be a partner of petitioner No. 1 firm, challenge the validity of the proceedings under Sub-sections (3) and (5) of Section 132 of the Income Tax Act, 1961 (hereinafter referred to as the Act), and the order of the Income Tax Officer dated June 5, 1972, under Section 132(5) of the said Act and pray for the issue of a writ of mandamus directing the respondents to restore to the petitioners the 114 silver bars retained by the Income Tax Officer by his said order dated June 5, 1972.
(2.) The facts which give rise to this writ petition may be briefly stated. In pursuance of an authorisation issued by the Director of Inspection (Investigation), New Delhi, under Section 132(1) of the Act, searches were carried out on October 15, 1971, at the following places, namely :- 1. Residence of Shri Pooran Mal, 12-K, Kamala Nagar, New Delhi-7, 2. Office premises of the firms where Shri Pooran Mal was stated to be a partner at A-14/3, Jamuna Bhavan, Asaf AH Road, New Delhi, and 3. Office premises of M/s. Udey Chand Pooran Mal and M/s. Pooran Mal and Sons, 14/16, Popatwadi, Bombay-2, in which Shri Pooran Mal was stated to be a partner.
(3.) Jewellery, cash and account books and other documents were seized from these premises. In addition, it was stated that 84 silver bars had been pledged with the Laxmi Commercial Bank Ltd, Sadar Bazar Branch, Delhi, by M/s. Udey Chand Pooran Mal and 30 silver bars were pledged with the Punjab National Bank, Naya Bazar, Delhi, by M/s. P.M. Motor and General Finance Company. A restraint order under Section 132(3) of the Act was passed in respect of the above silver bars. The seizure of the jewellery and cash was made and the restraint order passed in respect of the 114 silver bars on the ground that they were the property of Shri Pooran Mal, the individual. Thereafter, the Income Tax Officer made an inquiry under Sub-section (5) of Section 132 of the Act and on the basis of the material before him, he passed an order dated January 12, 1972, estimating the undisclosed income of Shri Pooran Mal, the individual, at Rs. 45,72,867 including the value of the 114 silver bars which were estimated at Rs. 18,00,000 and calculating the tax liability of Shri Pooran Mal on his undisclosed income of Rs. 41,90,463. By the same order, the Income-tax Officer retained the 114 silver bars in his custody for the purpose of satisfying the tax liability of Shri Pooran Mal.;