1990 (2) TMI 48 - HC - Income Tax

Summary

Issues:
1. Writ petition for mandamus to release seized books of account and documents.
2. Interpretation of section 132(8) of the Income-tax Act regarding retention of seized documents.
3. Compliance with statutory provisions by income-tax authorities.
4. Communication of Commissioner's approval to the assessee.
5. Effect of pending writ petition on the release of documents.
6. Consideration of a fresh cause of action for a second writ petition.

Analysis:
1. The petitioner filed a writ petition seeking a mandamus to release the books of account and documents seized by the income-tax authorities. The case involved previous interim orders and modifications by the court, leading to confusion regarding the release of the seized items.

2. The petitioner's counsel referred to section 132(8) of the Income-tax Act, emphasizing the statutory obligation for the authorities to communicate reasons for retaining seized documents beyond 180 days. Citing the decision in CIT v. Oriental Rubber Works, it was argued that failure to communicate such reasons renders the retention invalid.

3. The income-tax authorities, represented by Mr. Som, acknowledged the Commissioner's approval for retention but highlighted that communication was delayed due to the interim order. The court found no failure on the part of the authorities to comply with statutory provisions, considering the pending writ petition and the confusion caused by the interim orders.

4. Despite the recorded reasons for retention and the pending writ petition, the court did not find grounds to release the seized documents under section 132(8) of the Income-tax Act. It was noted that the authorities should have followed the appeal court's order but due to the pending matter, the release was not warranted.

5. The court concluded that there was no fresh cause of action for the petitioner to file a second writ petition immediately. However, it directed the revenue authorities to communicate the order within a week, emphasizing compliance with the court's directions.

6. In the final disposition, the court instructed all parties to act according to the dictated order, signaling the end of the present writ petition while ensuring communication of the relevant order by the income-tax authorities.