TMI Blog1993 (2) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... The petitioners in Writ Petition No. 993 of 1992 have sought for quashing the entire search and seizure operation carried on by the officers of the Income-tax Department, and further directing the respondents to release all the cash seized from the vehicle on September 2, 1992, as mentioned in the panchnama (annexure 11 to the petition) and also not to proceed further against the petitioners under section 132 of the Income-tax Act, 1961. In Writ Petition No. 994 of 1,992, the petitioners have sought for quashing the entire search and seizure dated September 2, 1992, as the same was done without fulfilling the condition precedent for the exercise of power under section 132A of the Income-tax Act, 1961, and further directing the authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oners have further specified the amount which belongs to each of the petitioners and Mahesh Kumar out of the seized amount. It is not necessary for us to go into other details of the facts stated in the petition for the purpose of disposal of this writ petition. The petitioners have raised two grounds of attack in the said seizure. Firstly, there was no authorisation for the said seizure as against petitioners Nos. 1 and 2 for which reliance has been placed In the cases of Jagmohan Mahajan v. CIT [1976] 103 ITR 579 (P H) and Manmohan Krishan Mahajan v. CIT [1977] 107 ITR 420 (P H), and, secondly, since the seizure was made by the police personnel and, therefore, the seizure by the income-tax authorities under section 132 of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. Therefore, we leave the matter open and the matter is to be tested in proceedings under section 132(5) of the Act. The further contention on behalf of the petitioners is that the search and seizure made by the respondent-authorities is illegal as there was no material existing on the records before issuance of the warrant of authorisation in the present case. This fact has been vehemently urged on behalf of learned counsel for the petitioners. Reliance has been placed on Manju Tandon v. T. N. Kapoor, Dy. Superintendent of Police [1978] 115 ITR 473 (All), in which it was held (headnote): "Accordingly, what has to be seen in the present case is as to whether the action of the Commissioner in authorising an officer of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er concerned. It is made up of two words 'reason' and 'to believe'. The word 'reason' means cause or justification and the word 'believe' means to accept as true or have faith in it. Before the officer has faith or accepts a fact to exist there must be a justification for it. The belief may not be open to scrutiny as it is the final conclusion arrived at by the officer concerned as a result of mental exercise made by him on the information received. But the reason due to which the decision is reached can always be examined. When it is said that the reason to believe is not open to scrutiny, what is meant is that the satisfaction arrived at by the officer concerned is immune from challenge. ... The mere fact that an authorisation has been is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieve that any person was in possession of any money, bullion or jewellery or other valuable articles which represents undisclosed income. If either of these conditions is missing or has not been adhered to, then the authority is precluded from invoking his powers under this section." The reliance placed by learned counsel for the petitioner and the principles enunciated therein are not disputed even on behalf of the Revenue. The only question according to the petitioner was whether there existed something on record on the basis of which an inference could be drawn of reason to believe of the authorities issuing the warrant of authorisation which is a pre-condition. In order to satisfy ourselves, earlier we directed the learned chief stand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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