MAMCHAND AND CO Vs. COMMISSIONER OF INCOME TAX WEST BENGAL II

JUDGEMENT

(1.) The facts in this case are briefly as follows: Mamchand Agarwalla and Murarilal Agarwalla are two brothers. Krishna Kumar Agarwalla is the son of Mamchand Agarwalla. These three persons carry on a partnership firm under the name and style of Messrs. Mamchand and Company at No. 21-A, Canning Street, Calcutta. It is said that the partnership firm commenced from the year 1937 and its constitution was changed from time to time. The firm of Mamchand and Company is assessed in 'C' Ward District V (I). Mamchand Agarwalla and Murarilal Agarwalla in their individual capacities are assessed in 'D' Ward District V (I). Krishna Kumar Agarwalla has filed his return in his individual capacity in additional Survey, District V (I), Calcutta. Prior to 31st January, 1967 the assessment of the firm of Mamchand and Co. had been completed upto the assessment year 1963-64 and returns had been filed for the assessment years 1964-65 and 1965-66. The assessment in respect of the same has not yet been completed. On the 30th of January, 1967 respondent No. 1 the Commissioner of Income-tax, West Bengal, issued two warrants of authorisation under Section 132 of the Income-tax Act, 1961 read with Rule 112 (1) of the Income-tax Rules, 1962 authorising search at No. 21-A, Canning Street, Calcutta and 22 Mandaville Gardens, where the Agrawallas reside. A third warrant of authorisation was issued, authorising search at No. 22-A Canning Street in respect of 'Ramswarup Mamchand', which is partnership firm between the two brothers Mamchand and Murarilal.

(2.) We are concerned in this case with Section 132 of the Income-tax Act, 1961 (hereinafter referred to as the "said Act"), together with the Rules framed under the said Act, (hereinafter referred to as the "said Rules"), I set out here the relevant part of Section 132.

(3.) A similar warrant was Issued to Bibek Banerjee, I. T. O. 'E' Ward District Howrah, S. Das, I. T. O. 'H' Ward, District I (2) B. R. Biswas, L T. O. 'I' Ward District 1 (2) and Nagendranath Sana, I. T. O. 'E' Ward District 1 (2) in respect of Ramswarup Mamchand, for search at 21-A, Canning Street, Calcutta. The authority given was similar to that contained in the first mentioned warrant On the strength of the warrants Issued as mentioned above, the authorised officers conducted searches and took custody of books of account, documents etc. 3. On the 31st January. 1967 the respondents Nos. 2 and 5 assisted by some Inspectors and clerks entered the office premises of the said firm at No. 21-A, Canning Street and conducted a search. The search report or 'panchnama' as it has been called, is set out at pages 49 to 69 of the paper book. This panchanama shows that books of account and documents shown in schedule 'A' to the same were found and upon which marks of Identification were placed. Articles or things (including money) which were found are set out in schedule 'B' to the same, and the books of account and documents set out in schedule 'C' were taken possession of. The search took place between 10 A. M. and 7. P. M. During the search, one Shri Benarasilal Gupta described as "officer-incharge" of Ramswarup Mamchand was examined. A copy of his examination is set out at pages 70-71 off the paper book.