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TMI Blog1972 (3) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, (4) 95-B, Dhuramtalla Street, Calcutta, (5) Branch Depot at Barasat 24-Parganas, (6) Branch Depot at Bongaon, 24-Parganas, and (7) premises of the appellant in village Ramchandrapur, P. O. Narendrapur, 24 Parganas. A large number of books, documents and papers were seized. A list of the appellant's books, documents and papers seized has been set out in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tory 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 might be issued will not, or would not, produce or cause to be produced, any books of account or other documents. Thirdly, those documents must be useful for, or relevant to any proceedings under the Indian Income-tax Act, 1922, or under the Income-tax Act, 1961. Fourthly, that any person is in possession of money, bullion, jewellery or other valuable article o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings, 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. The Supreme Court allowed the appeal and set aside the order of the Allahabad High Court. The Supreme Court held that the issue of search warrant by the Commissioner under section 132 of the Income-tax Act, 1961, is not judicial or quasi-judicial act. It laid down that where the Commissioner entertains the requisite belief and for reasons recorded by him authorise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 warrants cannot be issued with a view to making a roving or fishing enquiry. But subject to that limitation, a bona fide search and seizure is protected under the Act. Once the court finds that there are materials to justify the summons or notices under section 132 of the Act, the court's function ceases. The decision of Balwant Singh v. R. D. Shah, Director of Inspe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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