Law:

Section:

Section 133A, read with section 131(3), of the Income-tax Act, 1961-Survey-During survey made by ITO under section 133A, assessee produced all documents required by ITO-Whether ITO could impound records under section 131(3) when assessee co-operated in terms of section 133A(6)-held, on facts, no Facts The ITO visited the business premises of the assessee-firm on 11-4-1978 for purpose of survey under section 133A, and served four notices on it under section 131, for appearance and production of books of account, etc., on that day itself. Although the assessee complied with the notices, the ITO impounded the records under section 131(3). On writ: Held Subsection (1) of section 133A, no doubt, authorised the ITO to enter the business premises of the assessee and inspect the books of account as required. The assessee had, admittedly, made available all the records to him, thereby causing no impediment to the ITO in exercising power under sub-section (3) of section 133A. The ITO was, thus, debarred from removing the books of account from the business premises of the assessee under sub-section (4) during the survey operations under section 133A. At best he could have placed identification marks on the same as permitted under sub-section (3). Resort to powers under section 131(1) and (2) was called for only if the assessee had refused or evaded to co-operate during the survey in terms of section 133A(6). In this case, the assessee had duly co-operated with the ITO in his survey operations, and the ITO had, thus, no jurisdiction to exercise powers under section 131(1) and (2) while surveying the accounts, etc., under section 133A. The impugned notices and the order impounding the account books were, consequently, quashed. CIVIL WRIT NO. 1787 OF 1978. JUDGMENT TANDON, J. - Gheru Lal Bal Chand, Bhatinda (petitioner), is a partnership firm which was constituted with effect from 14-10-1975 under a partnership deed executed by and between its five partners on 29-12-1975. It has its office and business premises in Subhash Market at Bhatinda. It carries on the business of commission agency and that of sale and purchase of agricultural commodities, like cotton, etc. The…

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