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Section 131 of the Income-tax Act, 1961 - Power regarding discovery, production of evidence, etc. - Where department seized books of account of assessee and even after expiry of five years did not complete assessment nor returned seized books of account, it was abuse of provisions of section 131(3)(b) [In favour of assessee] The department seized books of account of assessee in search proceedings. On failure of department to return the seized documents, the Single Judge of the High Court directed the revenue to return the seized books of account and also directed the revenue to pay damage of a sum to assessee. Held that the survey was conducted on 20-9-2005. On 21-9-2005, in terms of the notice, the assessee handed over all the books of account. During the course of the survey, it was the department which had taken away the books of account and other documents after making survey. It was unfortunate, even after five long years, the revenue did not complete the assessment still, they wanted to continue to retain the books by abusing the provisions contained in section 131(3)(b), wherein the higher authorities are empowered to make orders for extension of time enabling the Assessing Officer to retain the books of account and other documents. Therefore, it was a clear case of abuse of the aforesaid statutory provisions and, therefore, the Single Judge was justified in issuing a direction to return the books of account. CASE REVIEW Subha & Prabha Builders (P.) Ltd. v. ITO [2009] 318 ITR 29 (Kar.)affirmed. K.V. Aravind and M.V. Seshachala for the Appellant. JUDGMENT N. Kumar, J. - The Revenue has preferred this writ appeal against the order of the learned single judge1, who has held that section 131(3) of the Income-tax Act, 1961 (hereinafter, referred to as "the Act" for brevity), does not enable the Chief Commissioner or other authority who has the power to extend the period and supplement it to an outer limit of 15 days to keep extending the period repeatedly. 2. The income-tax authorities conducted a survey of the premises of the respondent on September 20, 2005, and in the course of the said survey, they examined the general activities of the respondent,…

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