| Case ID |
0f654b81-1626-4e34-83f2-98f627cc4ae6 |
| Body |
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| Case Number |
CIVIL WRIT NO 550-D OF 1965 |
| Decision Date |
Feb 02, 1966 |
| Hearing Date |
|
| Decision |
The court quashed the search and seizure operation conducted on the business premises of N.K. Textile Mills, ruling that the Commissioner of Income Tax did not have sufficient grounds to believe that the petitioner would not produce the necessary documents. The court found that the affidavit provided by the Commissioner was defective and could not establish the requisite belief for the issuance of a search warrant. Furthermore, the court held that the seizure of documents was excessive and constituted an abuse of power, as many of the seized documents were not relevant to the ongoing proceedings. The court ordered the restoration of all documents that had not been returned to the petitioner. |
| Summary |
The case revolves around a search and seizure conducted by the Income Tax Department at the premises of N.K. Textile Mills under Section 132 of the Income-tax Act, 1961. The petitioner challenged the legality of the operation, arguing that the Commissioner lacked a valid basis for believing that the firm would not comply with requests for documents. The court highlighted that the affidavit from the Commissioner failed to meet legal standards and that the scope of the seizure was excessively broad, infringing on the business operations of the petitioner. The ruling emphasized the need for any search and seizure to adhere strictly to legal requirements, ensuring that only relevant documents are taken. This case is significant for its interpretation of the legal thresholds necessary for authorizing such measures, and it underscores the protections available to businesses against arbitrary state action. |
| Court |
Punjab High Court
|
| Entities Involved |
Commissioner of Income Tax,
N.K. Textile Mills
|
| Judges |
S.B. Capoor,
A.N. Grover
|
| Lawyers |
G.C. Sharma
|
| Petitioners |
N.K. Textile Mills
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1966 SLD 404 = (1966) 62 ITR 58
|
| Other Citations |
Calcutta Discount Co. v. Income-tax Officer [1961] 41 ITR 191,
Gobind Singh v. D.I.G. of Police [1964] Cur L.J. 150,
Nand Singh v. Superintendent of Police [1964] Cur L.J 146,
Padmabati Dasi v. Rasik Lal Dhar [1910] ILR 37 Cal 259,
Seth Brothers v. CIT [1966] 62 ITR 44 (All.),
State of Bombay v. Purushottam Jog Naik [1952] SCR 674,
Walaiti Ram v. State of Punjab [1965] 67 PLR 523
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
132
|