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TMI Blog2017 (11) TMI 1009X X X X Extracts X X X X X X X X Extracts X X X X ..... he basis for issuing the above requisition letter but the availability of such information by itself without there being any other material or information which would justify that the person in possession was having income over and above that disclosed and that he had concealed the real income is not sufficient to order requisition of the seized cash. Requisitioning of books of accounts and their documents under section 132A(1)(b) without recording satisfaction or reason to believe is not sustainable in law and is therefore liable to be quashed. In view of the above decisions no requisition could have been made under section 132A(1) to the S.S.P. Muzaffar Nagar for producing the cash which was recovered from one of the accused. The documents or the books of account in respect whereof the requisition is said to have been issued have not been disclosed either in the requisition or in any other supportive material which means that the requisitioning authority had no intimation whatsoever as to the documents or the books of account which he proposes to be requisitioned. In such a situation, the only inference which can be drawn is that no satisfaction or any reason to believe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that- (a) any person to whom a summons under sub-section (1) of section 37 of the Indian Income-tax Act, 1922 (11 of 1922) or under sub section (1) of section 131 of this Act 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 this Act was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to produce, or cause to be produced, such books of account or other document as required by such summons or notice and the said books of account or other documents have been taken into custody by any officer or authority under any other law for the time being in force, or (b) any books of account or other documents will be useful for, or relevant to, any proceeding under the Indian Income-tax Act, 1922 (11 of 1922), or under this Act and any person to whom a summons or notice as aforesaid has been or might be issued will not, or would not, produce or cause to be produced, such books of account or other documents on the return of such books of account or other documents by any officer or authority by whom or which such books of account or other documents have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulfilled the competent authority may direct the authority referred to in the aforesaid clauses to deliver such books of account, other documents or assets to the requisitioning authority. 7. The aforesaid books of account, other documents or the assets could be directed to be requisitioned only if the officer or the authority concerned has reason to believe on the basis of the information in his possession that such books of account, other documents or the assets have been taken into custody under any other law by any officer or authority. Therefore, possession of a certain information and the formation of opinion having reason to believe that such books of account, other documents or the assets have been taken into custody by some officer or authority in accordance with law is essential for a valid requisition. 8. Rule 122(d) of the Income-tax Rules provides that the authorisation under section 132A(1) shall be in writing under the signature of the officer issuing the authorisation bearing his seal and shall be in Form 45C. It further provides that the copy of the requisition along with the copy of the authorisation in Form 45C shall be forwarded to the person referred to un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... poses of the Indian Income-tax Act, 1922, or the Income-tax Act, 1961 by Sri Hukum Singh, House No. 7, Gandhi Colony (in front of Barat Ghar) Muzaffar Nagar from whose possession or control such assets have been taken into custody by the officer/authority aforesaid. This is to authorise Umesh Takyar/Yashvendra Singh to require the said officer or authority to deliver to you the books of account, other documents or assets as aforesaid. (Seal) (Sd.) . . . . . . . . . . Director General or Director/ Chief Commissioner or Commissioner of Income-tax 12. The aforesaid contents of the requisition notice no where contains any averment that there was any material or information in possession of the authority issuing the aforesaid requisition on the basis of which any reason to believe as required under section 132A(1) of the Act could have been recorded. It does not even record any satisfaction for issuing such requisition. In addition to it, the requisition notice does not even contain or specifies any books of account or documents which are sought to be requisitioned by the officer authorised from the S.S.P. Muzaffar Nagar except the assets alleged to be take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that mere unexplained possession of the amount without anything more could hardly be said to constitute information which could be treated as sufficient by a reasonable person leading to an inference that it was income which was not disclosed by the person in possession of it for the purpose of the Act. After all, the belief for the purpose of section 132A is to be belief entertainable by a reasonable man and is not the belief arbitrarily entertained on material or grounds which will not lead a reasonable man to that belief. In other words, the possession of some amount by a person was not held to be sufficient for the purpose of issuing requisition under section 132A of the Act. 16. In another case of Manju Tandon v. T. N. Kapoor, DSP reported in [1978] 115 ITR 473 (All) another Division Bench of this court while considering the provisions of section 132A(1) of the Act held that it is only the material available with the authority concerned at the time of issuing authorisation under section 132A of the Act that is relevant for forming an opinion for requisition under section 132A(1) of the Act. In the said case certain ornaments were ceased by the Central Bureau of Investigatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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