Khandani Shafakhana vs Union of India and others

Certain books of account and documents belonging to the petitioner, Khandani Shafakhana, were seized by the Income Tax Officer on November 20, 1981, and November 25, 1981. The petitioner has challenged the legality of the seizure and retention order on the ground that the respondents did not obtain the approval of the Commissioner for the retention of the documents within a period of 180 days from the date of the seizure. It is stated that there has been violation of the provisions of section 132(8) of the Income Tax Act. The respondents in their reply have placed on record certain documents showing that approval of the Commissioner was obtained for the retention of the documents. Learned counsel appearing for the Department contends that the Department has no objection to the return of the account books and the documents subject to the conditions that the Department at their own cost shall obtain photocopies of the relevant entries and the documents and they should be attested by the petitioner to be true copies. We see no reason to refuse the above request of the Department.

Without going into the merits of the petition, we direct that the respondents shall within 15 days from today prepare the photo copies of the relevant entries and documents and thereafter the books of account and the documents seized from the petitioner shall be returned to him after the petitioner certifies the photo copies to be true copies of his books of account and documents. The petition is disposed of. We leave the parties to bear their own costs.