TMI Blog1972 (3) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... charging the rule. This application was made under article 226 of the Constitution. The appellant is Messrs.Bharati Private Ltd. It is a private limited company. It carries on the business of distribution of cement, iron and steel, asbestos and also the business of clearing handling agency. On February 10 and 11, 1966, the appellant's business and residential houses were searched under a search warrant and certain articles seized. It is against this search and seizure that the present challenge was made under article 226 of the Constitution. The appellant's premises which were searched were : (1) office at 12A, Netaji Subhas Road, Calcutta, (2) godown at 244, Upper Chitpur Road, Calcutta, (3) P-6, Block-B, Bangur Avenue, Calcutta-28, ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection or Income-tax Officer to enter and search any building or place or break open the lock of any door, box, locker, safe, etc., or seize any books of account or other documents, money, valuable article or thing, etc., place marks of identification on any books of account or other documents or cause to be made extracts or copies therefrom or make an inventory of any such money, bullion, jewellery or other valuable article or thing. " Before the Commissioner acts under the section, he has got to comply with certain requirements of the statute. First, he has to have certain information in his possession. Secondly, in consequence of that information, he must have reason to believe that any person to whom a summons or notice has been or mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng at the time before a summons or notice is issued under section 132 of the Act. Explanation 2 of section 132 of the Act expressly includes " also of proceedings under this Act which may be commenced after such date in respect of any year ". By the word " proceedings " this apparently includes not only present proceedings or past proceedings but also future proceedings, which " may be commenced ". A reference was made to the decision of the Allahabad High Court in the case of Seth Brothers v. Commissioner of Income-tax where the Allahabad High Court struck down the search and seizure. The case thereafter went to the Supreme Court of India and it is reported as Income-tax Officer, Special Investigation Circle B, Meerut v. Seth Brothers. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd seizure under that section can be resorted to only if there are pending proceedings. The Explanation 2 of section 132 of the Act makes it clear that the question whether the section requires that the proceedings should be imminent need not be answered. It may be imminent or it may not be imminent. If there is only a remote possibility of such summons or notice being issued, the section would not be satisfied, not because there are no proceedings imminent, but because a reasonable person could not have, in those circumstances, reason to believe that the person concerned will not produce the document if summons or notices are issued to him. Wide as the powers are under section 132 of the Act, there are some inherent limitations. Search war ..... X X X X Extracts X X X X X X X X Extracts X X X X
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