Law:

Section:

JUDGMENT G.P. Singh, J.-This is a petition under article 226 of the Constitution and is directed against a seizure of currency notes of the value of Rs. 2,02,500 by the Income-tax Officer, B-Ward, Chhindwara, under section 132 of the Income-tax Act, 1961. The petitioner No. 2 firm, Messrs. Chunnilal Nahta, is a firm carrying on business in gold and the petitioner No. 1, Pannalal, is a partner of that firm. On 15th October, 1971, the shop and residential premises of the petitioners were searched by the Collector of Customs and Central Excise, M.P. and Vidarbha, and the Central Excise Officers of Nagpur, under the authority of a search warrant. In the search currency notes of Rs. 2,02,500 and gold coins, sikkas, and ornaments weighing 812.400gms. were seized by the Central Excise authorities. By an order passed on 18th December, 1971, the Collector of Customs and Central Excise held that the currency notes of Rs. 2,02,500 and the gold ornaments weighing 361.450 gms. had not offended any provisions of the Gold Control Act, 1968. As regards gold coins andsikkas, contraventions of the provisions of the Act were found and appropriate orders were passed in that behalf. The currency notes of Rs. 2,02,500, and the gold ornaments were ordered to be released. On 4th December, 1971, the Commissioner of Income-tax, Madhya Pradesh, Nagpur and Bhandara, issued a warrant of authorisation under section 132(1) of the Income-tax Act, 1961, in favour of the Income-tax Officer, B-Ward, Chhindwara, and other officers to search and seize money, bullion, jewellery, etc., of the petitioner-firm which was to be found at the office of the Collector of Customs and Central Excise, Nagpur. In pursuance of the authority derived from the warrant of authorisation, the Income-tax Officer, B-Ward, Chhindwara, issued an order under section 132(3) of the Income-tax Act on 17th December, 1971, to the Collector of Customs and Central Excise, Nagpur, not to remove or part with the sum of Rs. 2,02,500 until the withdrawal of the notice. The petitioner-firm was also informed by the Income-tax Officer on 15th December, 1971, by letter, annexure "B", that the cash amount of Rs. 2,02,500 lying with the…

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