TMI Blog1995 (5) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... of Jadco Industries for the manufacture and sale of auto parts. He has his residence within the factory premises. In the year 1986, the petitioner inducted his son, Mr. Tarun Sharma, as a partner. Jadco Industries had, thus, become a partnership concern. In the year 1987, Mr. R. Bhardwaj, the petitioner's son-in-law, was posted as Inspecting Assistant Commissioner of Income-tax (Acquisition) at Bangalore. At that time, according to the petitioner, respondent No. 3 was the Chief Commissioner of Income-tax at Bangalore. He made certain reports reflecting adversely on the integrity of Mr. R. Bhardwaj. As a result, the residential premises of Mr. Bhardwaj were searched on July 1, 1987. On the same day, the business and residential premises o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r issuance of search warrant under section 132(1) of the Income-tax Act, 1961. . ." It has been further averred that " Shri R. R. Thakur, Income-tax Officer, Survey Circle, Jalandhar, was duly authorised to issue summons under section 131 of the Act as he was competent authority under orders of the Commissioner of Income-tax, Jalandhar, vide orders dated May 25, 1987 ". Written statements filed by respondents Nos. 4 and 6 are of a formal nature. The petitioner has filed a replication controverting the stand taken by the respondents and reiterating the claim as made in the petition. He has also filed a Civil Miscellaneous Application No. 2 of 1992 along with which he has produced a copy of the order dated December 7, 1988, passed by Mr. ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nter, search, break open, seize, place marks of identification and take all other steps as contemplated in sub-clauses (i) to (v), However, there are conditions precedent. Firstly, the competent authority must have information in its possession. Secondly, on the basis of the said information, it must have reasons to believe that the condition/s as stipulated in sub-clauses (a), (b) and (c) of section 132(1) exist. It is only then that it can authorise the search of the premises and seizure of the documents, etc. Section 132 impinges upon the privacy of a citizen. It even carries a social stigma. To a sensitive man, the consequences can be serious. The Legislature has consequently provided the in-built safeguards. These have to be satisfie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " Satisfaction note-- Shri Janak Raj Sharma, S. 240, Industrial Area, Jalandhar, Punjab-- in the case of-- June 30, 1987 : Information has been received that the C. B. I and the Income-tax Department are jointly organising a search on Shri R. Bhardwaj, Inspecting Assistant Commissioner (Acquisition), Bangalore, on July 1, 1987. The above party is the father-in-law of Shri Bhardwaj. It is informed that Shri Bhardwaj has invested his ill-gotten funds with his relatives, and is very likely to have invested monies in the businesses of his father-in-law, which are : 1. Jadco Industries, S. 240, Industrial area, Jalandhar, Punjab. 2. J. R. Industrial Corporation, Focal Point, Jalandhar, Punjab. The above party is not likely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conditions precedent for issuance of a search warrant under section 132(1) of the Income-tax Act, 1961. . . ." Still further, in the warrants of authorisation, it has been, inter alia, observed as under : " Whereas information has been laid before me and on the consideration thereof, I have reason to believe that : If a summons under sub-section (1) of section 37 of the Indian Income-tax Act, 1922, or under sub-section (1) of section 131 of the Income-tax Act, 1961, or a notice under sub-section (4) of section 22 of the Indian Income-tax Act, 1922, or under sub-section (1) of section 142 of the Income-tax Act, 1961, is issued to Shri Janak Raj Sharma (name of the person) to produce or cause to be produced, books of account or other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of authorisation, it was claimed by the first respondent that " information had been laid before " him and that on the consideration thereof, he had reasons to believe that " if a summons under sub-section (1) of section 37 of the Indian Income-tax Act, 1922, or under sub-section (1) of section 131 of the Income-tax Act, 1961, or a notice under sub-section (4) of section 22 of the Indian Income-tax Act, 1922, . . . . is issued to Shri Janak Raj Sharma to produce or cause to be produced, books of account or other documents . . . . he would not produce or cause to be produced, such books of account or other documents. . . ." It was also observed that " Shri Janak Raj Sharma is in possession of money, bullion, jewellery or other valuable artic ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
