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2009 (4) TMI 189 - HC - Income TaxPower of income tax authorities to impound and retain books and documents u/s 131 - the proviso to sub-section (3) of section 131 says that such documents or books of account cannot be impounded without recording reasons for impounding and further that the retention cannot be beyond the maximum limit of fifteen days - The extension of limit can only be a one-time exercise and supplementing the outer limit of fifteen days for some more days depending on the circumstances. The extension period should be counted only in days and not in months or years as outer limit is indicated in days - That will be the proper understanding of the proviso to sub-section (3) of section 131 of the Act and if so the present orders extending the period of retention, are all illegal and without the authority of law and are, therefore, quashed by issue of a writ of certiorari and the interim order passed earlier is made absolute - the respondents having misused the powers under the Act for retaining the documents for indefinite period and by repeated employment of the power under the proviso to sub-section (3) of section 131 of the Act are required to compensate the petitioner for the hardship and losses suffered.
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