M.Katju, J. - (1.) Heard Dr. Debi Prosad Pal and Sri Rakesh Kumar, for the petitioner, and Sri Bharatji Agarwal, for the Department.
(2.) This writ petition has been filed praying for a writ of certiorari to quash the impugned letters and summons dated October 23, 1998, four letters and summons all dated November 6, 1998, four letters and summons all dated November 25, 1998, and four letters and summons all dated December 2, 1998, relating to the financial years 1995-96, 1996-97, 1997-98 and 1998-99 and the survey and seizure made on October 30, 1998, and the retention of documents made under Section 131(3) of the Income-tax Act on November 17, 1998, by respondent No. 1 and all proceedings pursuant thereto. It has also been prayed that a writ of mandamus be issued commanding the respondent to act in accordance with law and cancel the impugned letters. It has further been prayed that a writ of prohibition be also issued to the respondent prohibiting the respondent from taking action in pursuance of the aforesaid letters and summons.
(3.) The petitioner is a company registered under the Indian Companies Act doing the business of insurance and investment. After nationalization of the life insurance business, the petitioner stopped the provident insurance business and has been carrying on business of providing social welfare saving schemes for the benefit of the public. Petitioner No. 2 is a citizen of India and shareholder in the petitioner-company. The petitioners are challenging the competence and the authority of the respondents to issue summons under Section 131 of the Income-tax Act and to conduct survey under Section 133A of the Act and to seize books of account or documents in the course of survey. In paragraph 4 of the writ it is alleged that the petitioner has crores of customers all over India who have availed of various social welfare savings schemes of the petitioner. The petitioner has numerous employees and has various branches and units of which the Kanpur branch is one. The present dispute relates to the Kanpur branch of the petitioner. The petitioner also engaged various contractors and subcontractors and professional or technical personnel. The petitioner has to deduct income-tax under Section 192 of the Act of those employees who have taxable income. The petitioner also deducts tax under Section 194C of the Act in respect of payments made to contractors or sub-contractors. The petitioner also deducts income-tax under the Act wherever it is applicable. All the said taxes have been deducted at source by the petitioner and have been duly paid by the petitioner to the credit of the Central Government under Section 200 of the Act. The petitioner also furnishes returns in respect of the said tax deducted at source under Section 206 of the Act to the prescribed income-tax authorities in different States, respondent No. 1, Assessing Officer, TDS Ward-III(9), Kanpur, being one of them in respect of the branch office at Kanpur where the petitioner deducts tax under Section 192 of the Act and files returns in Form No. 24. In respect of other deductions of tax made by the petitioner at source under other provisions of the Act the same are done at the head office at Calcutta and the tax deducted at source is paid at Calcutta and all returns in prescribed forms are filed at Calcutta with the Income-tax Officer, TDS Ward 21(3), Calcutta.;