B.S.Chauhan J. - (1.) THE instant writ petition has been filed for quashing the impugned order dated December 22, 1999 (annexure-2), impounding the books of account and other documents : for quashing the summons under Section 131 dated December 21, 1999 (annexure 1); and for issuing directions to the respondents to release the entire books of account and other documents impounded by them.
(2.) THE facts and circumstances giving rise to this case are that a survey was conducted under Section 133A of the Income-tax Act, 1961 (for short, "the Act"), at the business premises of the petitioner on December 21, 1999, and a list of documents was prepared. On the same date, i.e., on December 21, 1999, summons under Section 131 of the Act was issued to the director of the petitioner-company to produce the books of account and other documents for verification of the entries on December 22, 1999. In pursuance of the summons issued under Section 131(1) of the Act, the director of the petitioner-company appeared along with the books of account and other documents on December 22, 1999, and the same had been impounded by the authority on the said date. Hence, this petition. Heard Mr. Anjay Kothari, learned counsel for the petitioner, and Mr. Sandeep Bhandawat, for the respondents. It has been submitted by Mr. Kothari that the law does not permit impounding the books of account and documents in survey proceedings conducted under Section 133A of the Act and the authorities have acted illegally and in contravention of the statutory provisions and the said impugned orders are liable to be quashed. On the other hand, it has been submitted on behalf of the respondents that a survey was conducted on December 21, 1999, by the authorities concerned and from the record seen therein, it was felt necessary that the summons be issued under Section 131(1) of the Act as a large number of documents were there and the directors of the petitioner-company had been evading any explanation for the entries made therein. The notice was issued for verification on December 22, 1999, and as during the course of survey, there had been marking for identification of the documents putting exhibit numbers thereon, the documents so exhibited were directed to be produced for verification on the next date and it is vehemently denied that the books of account and other documents have been impounded during the survey, rather the same had been impounded while hearing the petitioner in pursuance of the summons issued under Section 131(1) of the Act as their representatives did not furnish any explanation for the entries made therein and the impugned orders are justified and have been passed in strict compliance with law. I have considered the rival submissions made by learned counsel for the parties.
(3.) SECTION 133A of the Act empowers the authority to conduct the survey. Sub-section (4) of the said section provides that the income-tax authority acting under the provisions of the said section "shall, on no account, remove or cause to be removed from the place wherein he has entered, any books of account or other documents or any cash, stock or other valuable article and thing." Thus, the said Sub-section (4) of the said section puts an embargo on the powers of the authority to remove or cause to be removed from the place where he has entered, the books of account and other documents, etc. Sub-section (6) of Section 133A reads as under : "If a person under this section is required to afford facility to the income-tax authority to inspect books of account or other documents or to check or verify any cash, stock or other valuable article or thing or to furnish any information or to have his statement recorded either refuses or evades to do so, the income-tax authority shall have all the powers under Sub-section (1) of Section 131 for enforcing compliance with the requirement made." The aforesaid provision empowers the authority to exercise the powers conferred upon it under Section 131(1) of the Act in case the person concerned refuses or evades to furnish any information or to have his statement recorded. ;