R.L. Gulati, J. - (1.) THIS is a petition under Article 226 of the Constitution arising out of a proceeding for search and seizure of the account books of the petitioner under Section 132 of the Income-tax Act, 1961.
(2.) AT the outset we are constrained to say that this case like some other cases of this nature which have come to our notice reveals a sorry state of affairs. The income-tax department seems to be labouring under a misconception with regard to the scope of Section 132 and the powers of the authorities concerned. The petitioner is a private limited company which is engaged in the business of transport at. Kanpur. On May 8, 1969, the income-tax department carried out a raid at the business premises of the petitioner-company as well as the residential premises of its cashier, Sri S. R. Verma, and seized 61 account books and other papers and documents. In its letter dated May 13, 1969 (annexure "I" to the writ petition), the petitioner requested the first respondent, the Commissioner of Income-tax, for the copies of the following documents : (a) reasons, if any, whether recorded or not, on which authorisation for the search was issued, (b) copies of the warrant of authorisation to the person/persons participating in the search, and (c) copies of the statements of person/persons recorded during the course of the search. The Commissioner of Income-tax by his letter dated June 28, 1969, informed the petitioner that the copies of the search warrants and the other information asked for could not be furnished. The petitioner then on August 21, 1969, made an application to the Commissioner for the inspection of the following documents : (I) search warrants; (II) complaint, if any ; (III) statement or affidavit of the complainant, if any; (IV) report of the Income-tax Officer or any other officer, if any; (V) reasons recorded, if any.
(3.) THIS was followed by a representation to the Commissioner dated August 28, 1969, in which the petitioner requested that the records of the search and seizure proceedings may be shown to him. Sri V. C. Chaturvedi, acting on behalf of the Commissioner of Income-tax, sent the following reply to the petitioner on October 9, 1969 : "Please refer to your petitions dated August 21, 1969, and August 28, 1969, in the matter of inspection of search warrants, etc., and the return of the seized books, etc. 2. I am directed to inform you that in the absence of any provision for the inspection of documents mentioned in your application dated August 21/1969, your request cannot be acceded to. The search warrants were duly shown at the time of search. 3. As for the request for the return of the seized books, etc., the same are under scrutiny and would be returned thereafter." The second respondent, the Income-tax Officer, Companies Circle, B-Ward, Kanpur, had also impounded certain documents of the petitioner on May 6, 1971, under Section 131 of the Act. Some more documents were impounded on October 15, 1971. When these documents and account books seized were not returned to the petitioner for a long time, he filed the present writ petition. The seizure of the account books and the documents has been challenged mainly on three grounds : (i) that the Commissioner did not record any reason before issuing the search warrants; (ii) that the books of accounts were retained beyond the period allowed under the law without the sanction of the Commissioner, of Income-tax ; and (iii) that the sanction by the Commissioner to retain the books of accounts and documents beyond the initial period specified in the section was not communicated to the petitioner. ;