TMI Blog1987 (3) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... ee to income-tax and wealth-tax, challenges the retention of certain documents and books of accounts seized under section 132(1) of the Income-tax Act, 1961 (hereinafter called " the Act "), by the concerned authorities. The officers of the Income-tax Department raided the premises of the company as well as the residential premises of the petitioner on November 13, 1984, and December 27, 1984, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e date of the seizure unless the reasons for retaining the same are recorded by him in writing and the approval of the Commissioner for such retention is obtained." The proviso to that sub-section is not material for our purpose. On a plain reading of the above sub-section, it becomes clear that two conditions must be satisfied before the authorised officer is permitted to retain the documents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accounts and/or other documents. If such an application is received by the Board, sub-section (12) enjoins upon the Board to give the applicant an opportunity of being heard and thereafter pass such orders as it may think fit. On a conjoint reading of the aforesaid sub-sections, it seems clear that the assessee must be communicated the reasons recorded by the authorised officer on the basis whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the basis whereof the approval was granted. The Supreme Court further observed that such communication must be made as expeditiously as possible after the passing of the order of approval by the Commissioner failing which the Commissioner's decision according approval would become ineffective and the further retention of the books/documents would become invalid and unlawful. Lastly, the Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner. To date, no such intimation has been given to the assessee and, therefore, in view of the ratio of the above decision, there can be no doubt that the extended retention of the account books/documents is wholly illegal and unlawful. We are, therefore, of the opinion that the grievance made by the assessee is well-founded. We, therefore, allow this petition and make the rule absolute in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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