Law:

Section:

SECTION 37 OF THE FOREIGN EXCHANGE REGULATION ACT, 1973, READ WITH SECTION 132A OF THE INCOME-TAX ACT, 1961 - WHETHER IT IS NECESSARY FOR OFFICER ISSUING SEARCH WARRANT UNDER SECTION 37 TO DISCLOSE TO PERSON EFFECTED AS TO WHAT MATERIAL WAS BEFORE HIM ON WHICH HE ENTERTAINED A REASONABLE BELIEF TO MOVE INTO MATTER - HELD, NO - WHETHER MERELY BECAUSE SEARCH OR SEIZURE IS SHOWN TO BE ILLEGAL, DOCUMENTS SEIZED DURING SUCH ILLEGAL SEIZURE WOULD BE EXCLUDED FROM EVIDENCE ON THAT GROUND ONLY - HELD NO - WHETHER THE FACT THAT AFTER SEIZURE OF BOOKS OF ACCOUNT AND OTHER DOCUMENTS DURING SEARCH NO FURTHER ACTION IS FOUND NECESSARY, WOULD BY ITSELF MAKE SEARCH AND SEIZURE ILLEGAL - HELD, NO WORDS AND PHRASES - EXPRESSION 'SO FAR AS MAY BE' OCCURRING IN SECTION 37 OF THE FOREIGN EXCHANGE REGULATION ACT, 1973 Facts The Assistant Director (Enforcement) issued a search warrant under section 37 of the Foreign Exchange Regulation Act, 1973, and under the authority of such warrant a raid was conducted at the residence of the appellants which led to the seizure of certain documents including some foreign currency. Thereafter, when the appellants made various representations for the return of documents, the Commissioner of Income-tax issued a warrant of authorisation under section 132A of the Income-tax Act, by which the Assistant Director, Enforcement, was directed to deliver such books of account and other documents and goods seized during the search to the requisitioning officer. As the documents and material seized during the search were not returned, the appellants filed writ petition before the High Court for quashing of said search warrant as also the warrant of authorisation. Before the High Court, the Enforcement Department made a statement that it had closed proceedings and did not want to take any action against the appellants on account of search. The High Court observed that in view of this statement, the Directorate of Enforcement would normally be required to return the seized material to the appellants but as the same was sealed under a warrant of authorisation issued under section 132A of the Income-tax Act, an order for the return of same could not be made. The…

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