G.S.SINGHVI, J. - (1.) THE petitioners have prayed for quashing of the search warrant issued by the Deputy Director (Investigation) II, Jalandhar, (respondent No. 3) under S. 132 of the IT Act, 1961 ('the Act'). They have also prayed for grant of a declaration that the search and seizure operation carried out at their premises on 23rd Dec., 1998, was illegal.
(2.) THE facts necessary for deciding this petition are that on 8th Dec., 1998, search and seizure operation was carried out by the authorities of the IT Department on the premises of Rakesh Kumar Ashok Kumar and R.K. & Co., Builders and Colonisers. 9/30, Sadar Bazar, Jalandhar Cantt. On the basis of the documents collected during the said operation, the concerned authorities of the Department felt satisfied that there was some nexus between petitioners and Rakesh Kumar Ashok Kumar and R.K. & Co. in matters relating to property dealing and, therefore, it was decided to survey the premises of the petitioners at 11/12, Grain Market, Jalandhar Cantt. Accordingly, the Deputy Director (Investigation II), Jalandhar, issued authorisation dt. 23rd Dec., 1998, under s. 132A, r/w S. 135 of the Act in favour of Sarv Shri S.K. Khanna, G.L. Dhall, M.L. Verma and Dinesh Gupta (all Inspectors of Income tax), who conducted survey on 23rd Dec., 1998. On discovery of incriminating documents, the survey was converted into a search operation under S. 132(1) on the basis of the authorisation given by the Addl. Director, Jalandhar. During the course of search operation, books of account and other documents were seized from the premises of petitioner Nos. 1 and 2. The petitioners have challenged the survey as well as search and seizure operation by contending that the action taken by the respondents is ultra vires the provisions of ss. 132 and 132A of the Act. They have averred that the premises at 11/12, Grain Market, Jalandhar Cantt., could not have been raided on the basis of the warrant issued against Ashok Kumar Rakesh Kumar and R.K. & Co. and in any case, the documents, which are not connected with the said firms could not have been seized during the search operation.
(3.) THE respondents have justified the survey as well as search and seizure operation by asserting that the said actions were taken because the competent authority felt that there was valid ground to survey the premises of petitioner Nos. 1 and 2 at 11/12, Grain Market, Jalandhar Cantt. and later on, the same was converted into a search operation because the authority concerned was convinced that there was valid reason to do so.;