9911796707
TMI Blog1993 (12) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... t" only). The petitioners are partnership firms registered under the provisions of the Act and are engaged in the business of sale and purchase of various agricultural produce either of their own account or as commission agents. Pursuant to the notices issued to the petitioners under section 131(1) of the Act, they produced their books of account in question before the respondent Assistant Commissioner (Inspection) which were impounded by him under sub-section (3) of the aforesaid section. Since respondent No. 2 felt it necessary to retain the books of account for a period exceeding 15 days, as required under the proviso to section 131(3), the Commissioner of Income-tax accorded his approval permitting the retention of the books of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, detailed enquiry and the finalisation of the assessment proceedings may take a further 8 to 10 months. Mr. B.K. Poddar, learned counsel appearing for the petitioners, has submitted that the retention of the impounded books of account is contrary to the mandatory provisions contained in sub-section (3) of section 131 of the Act which, according to him, is pari materia with sub-sections (1) and (8) of section 132 of the Act and, therefore, the same should be directed to be released in favour of the petitioner firms forthwith. By relying on the decision of the Supreme Court in the case of CIT v. Oriental Rubber Works [1984] 145 ITR 477, learned counsel for the petitioners has further submitted that, in law, unless the reasons recorded for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded by the concerned income-tax authority he can retain in his custody the books of account impounded by him for such period as he thinks fit provided for retaining the same for a period exceeding fifteen days he has to obtain approval of the authorities mentioned in clause (b) of the proviso to sub-section (3) of section 131 as quoted above. It does not, on the face of it, provide that either the reasons so recorded or the order of approval has to be communicated to the person concerned. In the present case, as stated in the counter-affidavit and as is also apparent from the records produced before us, before impounding the books of account in question, respondent No. 2 has recorded reasons for doing so. As stated above, the retenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments returned to him by being kept ignorant about the factum of fulfilment of either of the conditions, it is obligatory upon the Revenue to communicate the Commissioner's approval as also the recorded reasons to the person concerned. In the absence of such communication the Commissioner's decision according his approval will not become effective." While taking the aforesaid view, the Supreme Court has taken note of sub-section (10) of section 132 of the Act which confers upon the person legally entitled to the return of the seized books and documents, a right to object to the approval given by the Commissioner under sub-section (8) by making an application to the Central Board stating therein the reasons for such objection. Under sub-sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) of the Act. Moreover, the Supreme Court, as noticed above, has merely held that the recorded reasons and the order of approval of the Commissioner should be communicated to the person concerned expeditiously. It has not laid down that if such communication is not made within a given period, then any further retention will become invalid. None the less in view of the law laid down by the apex court, expeditious communication of the recorded reasons and the order of approval has to be held as implicit even under sub-section (3) of section 131 of the Act. But since the statutory provision does not expressly contemplate any such requirement and there has been no binding judicial pronouncement in this regard so far, in the present cases, we a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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