Shah, J. - (1.) M/s. Seth Brothers run a flour mill in the name and style of "Imperial Flour Mills". From April 1, 1953 to March 1956 the business was carried on by M/s. Seth Brothers of which the partners were Baikunth Nath and Vishwa Nath. Between March 1956 and March 31, 1957, the business was carried on by Baikunth Nath and Vishwa Nath, Dr. Manmohan Nath, Mrs. Rama Rahi and Mrs Sushila Devi. On April 7, 1957 Mrs. Premlata was admitted as a partner. The partners were engaged in carrying on other business in the names of Seth Brothers (Private) Ltd., Nath Brothers (Private) Ltd., and Meerut Cold Storage and General Mills.
(2.) The owners of the business were, year after year, assessed to income-tax in respect of the income arising in the course of the business. On March 14, 1963 the income-tax Officer, Meerut issued a notice under Section 148 of the Income Tax Act, 1961, intimating M/s. Seth Brothers that there was reason to believe that their income chargeable to tax had escaped assessment and it was proposed to re-assess this income for the assessment year 1954-55. In response to the notice Baikunth Nath and Vishwa Nath, filed a return under protest. In the meantime information was received by the Income-tax Commissioner, U. P., that M/s. Seth Brothers were maintaining "duplicate records" and were evading assessment of their true income and that it was necessary to seize the records which may be found at "Shanti Niketan" Meerut in which M/s. Seth Brothers carried on the business of Imperial Flour Mills and other businesses. The Commissioner of Income-tax, U. P., on May 29, 1963 drew up a memorandum that on a report of the Income-tax Officer, D-Ward, Meerut requesting for authorization under Section 132 of the Income Tax Act, 1961, to enter and search the premises of M/s. Seth Brothers, he was satisfied about the need for the issue of the authorization. The Commissioner also issued an order in Form 45 prescribed under Rule 112 of the Income-tax rules, 1962, authorising two Income-tax Officers - R. R. Agarwal and R. Kapoor - to enter the premises known as "Shanti Niketan", at Meerut and to search for and seize such books and documents as may be considered relevant or useful for the purpose of the proceeding of reassessment, and to place identification marks thereon and to convey them to Income-tax Office.
(3.) On the 7 and 8 of June, 1963 the premises described in the order were searched and account books and certain documents found therein were seized and were carried to the Income-tax Office. M/s. Seth Brothers then moved a petition in the High court of Allahabad for an order quashing the proceedings of the Income-tax authorities. Petitions were also field by Nath Brothers (Private) Ltd., Seth Brothers (Private) Ltd., and Seth Brothers, Meerut for the same relief. By these petitions they claimed writs of certiorari quashing the letters authorizing search of the premises at Shanti Niketan, and writs of mandamus directing the Income- tax Officer to return all the books, papers and articles seized during the search and for writs of prohibition restraining the Income-tax Department from using any information gathered as a result of the search. It was submitted by the petitioners that K. L. Ananda, Income-tax Officer and Satya Prakash an "ex-employee" of M/s. Seth Brothers had given false information to the Deputy Director of Inspection with a view to blackmail the partners of M/s. Seth Brothers, and that the order of search was made by the Commissioner of Income-tax at the direction of the Deputy Director of Inspection, that the action of the Income-tax Officer in searching the premises and in seizing the books of account was malicious and that in any event Section 132 of the Income Tax Act, 1961, and the rules framed thereunder, were violative of the fundamental freedoms guaranteed by Articles 14, 19 (1) (f) and (g) and 31 of the Constitution.;