- (1.) BY means of this writ petition the petitioner has made the following prayers: "I. To issue a writ of mandamus ex debito justitiae to compel the respondent No. 1 to withdraw the notices under Section 131(1A) of the Income Tax Act, 1961, issued by him to HDFC Bank, Dankinganj, Mirzapur, and other branches of this bank and all other banks given in para -20 of the petition illegally restraining the operation of bank accounts and covertly sealing the office premises on 21.8.2011. II. To issue a writ of mandamus, order or direction to respondent No. 1 to permit the banks to allow the operation of bank accounts to discharge liabilities of the petitioner to its customers who are suffering due to illegal action of the respondent No. 1. III. To issue any other writ, order or direction which this Hon'ble Court may deem appropriate in the facts and circumstances of the case to avoid inconvenience and hardship to the petitioner which has been made vulnerable to the interest under Section 234A penalties under Section 271B and 271F and prosecution under Section 276CC of the Income -tax Act, 1961, if it is not able to get its accounts audited and fails to submit return of income along with audit report by 30.9.2011 for A.Y. 2011 -12. (iiia) a suitable writ in the nature of certiorari to quash the order of search by the Director of Income -tax date 20.8.2011 since he had no information in his possession to believe that the petitioner was in possess of undisclosed income or property as per Section 132(1)(c) and other clauses (a) and (b) of Section 132(1) of the Income -tax Act were not applicable. (iiib) a suitable writ or order in the nature of certiorari to quash the order of seizure of money from the banks by the authorized offices on 12.10.2011 under Section 132(1)(c)(iii) of the Income -tax Act. (iiic) a suitable writ or order in the nature of mandamus to the Income -tax Department to release the illegally seized money to the petitioner. IV. To award an exemplary cost to the petitioner for the impugned illegal action of the respondent No. 1." Sri V.B. Upadhyaya, learned senior counsel assisted by Sri R.B. Shukla, learned counsel for the petitioner -asses -see submits that the petitioner's company was named as Ram Naresh Financial Consultancy Private Limited, on its inception on 12.2.2010. Its name was changed to Ram Naresh Survey International Private Limited on 24.2.2011, which change was duly registered with the Assistant Registrar of Companies as per Annexure -6 to the writ petition. The petitioner manages 'Ram Survey', which is an online market research centre to elicit the customers to shape and develop products and services, with the help of latest information and guideline to ensure better compliance by the industries and consumers. It is a professionally managed market research company based at Mirzapur.
(2.) ON information, the Assistant Director, Income Tax (Investigation) issued a notice on 30.6.2011 under Section 131(1A) of the Income Tax Act to the main Banker of the assessee i.e. Branch Manager, H.D.F.C. Bank, Dankinganj, Mirzapur for personal attendance alongwith documents and details of account of the petitioner. Further, the Bank was directed that "No further operation from any of the accounts in the name of Ram Naresh Financial Consultancy Private Limited or in the name of Ram Naresh Survey International Private Limited should be allowed until the bank receive permission from the office of the undersigned." Later, a search was conducted at the business premises of the assessee on 10.10.2011 and in respect of the Bank account on 12.10.2011. The bank balance was converted in the Demand Draft and deposited in the account of Commissioner of Income Tax, by treating the same as undisclosed income.
(3.) CHALLENGING the action so taken by the department learned counsel for the assessee submits that Section 131(1A) of the Act only empowers an inquiry or investigation, if the officer has reasons to suspect that any income has been concealed or is likely to be concealed. He submits that no income is unaccounted nor there are any outstanding income tax dues against the company that can be recovered by the department. It is submitted that similar notices had also been issued to the other bankers of the assessee namely I.C.I.C.I. Bank, Mirzapur, AXIS Bank, Mirzapur; S.B.I., Mirzapur. The entered business of the petitioner had come to a halt. Its customers who are to be paid are lining up with complaint and pressure.;