Wp(C)/5400/2017 Of Kalliyath Steel Traders v. Deputy Director Of Income Tax (Investigation)

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN MONDAY, THE 20TH DAY OF FEBRUARY 2017/1ST PHALGUNA, 1938 WP(C).No. 5400 of 2017 (Y) --------------------------- PETITIONER(S):------------- R1-R4 & R7 BY SRI.K.M.V.PANDALAI, SC SRI.JOSE JOSEPH, SC R6 BY SRI.M.JITHESH MENON THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20-02-2017, ALONG WITH WPC. 5454/2017 AND CONNECTED CASES THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ---------------------------- APPENDIX PETITIONER(S) EXHIBITS: ------------------------ EXT.P5(a) TRUE COPY OF THE REPRESENTATION FILED BEFORE THE 7TH RESPONDENT.7TH RESPONDENT. RESPONDENT(S)' EXHIBITS----------------------- NIL //TRUE COPY// Msv/ P.S.TO JUDGE K. VINOD CHANDRAN, J - - - - - - - - - - - - -- - - - - - - - - - - - - - - - W.P(C) Nos.5400 of 2017 Y, 5454 of 2017 F, 5469 of 2017G, 5511 of 2017 L & 5521 of 2017 M- - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 20[th] day of February, 2017 J U D G M E N T After having heard the matter for aconsiderable time, this Court is of the opinion that it may not be proper for this Court to preempt the considerationby the Authorised Officer, who had conducted a search inthe site of the petitioners and had passed orders freezingthe accounts of the various Directors and concerns. 2. The petitioners are aggrieved by the fact thatthe accounts have been frozen and they are unable to carryon their day-to-day operations. Even the Cash Credit andOverdraft facilities have been frozen by the AuthorisedOfficer under Section 132(3) of the Income Tax Act, 1961; is the submission. 3. This Court after hearing the parties are of theopinion that it may not be proper for this Court to makeany observation on merits since it would affect thecontentions of the petitioners and pre-empt the AuthorisedOfficer. In such circumstances, considering the grievancesof the petitioners with respect to the operations havingcome to a standstill, it is thought fit that this Court directexpeditious consideration of the issue by the AuthorisedOfficer, to which all the parties are agreeable. 4. It is also submitted by the learned StandingCounsel appearing for the Department that since thepetitioner in W.P(C) No.5511/2017 who is at the helm ofthe affairs of all the concerns was hospitalised and the sonhad to be allowed to accompany the father, to the hospital; no statement could be taken under Section 132(4) at thetime of search. 5. The learned Senior Counsel appearing for the petitioner and the learned Counsel appearing for theother petitioners would undertake that they would presentthemselves on today if necessary, before the AuthorisedOfficer. The petitioners shall appear before the AuthorisedOfficer within three days. The petitioners authorisedrepresentative shall appear tomorrow before theAuthorised Officer who shall be issued with notice, by theAuthorised Officer, as to the date on which the appearanceof the petitioners is to be made, within the three days. The Authorised Officer shall also get personalacknowledgment of such notice served on the authorisedrepresentative of the petitioners. Statement shall be taken WPC.No.5400/2017 & connected cases : 4 : under Section 132(2) and the petitioner shall also be permitted to produce documents and material tosubstantiate their contentions and the Authorised Officer shall consider the issue (release of the accounts)expeditiously, at least within a period of one week from thedate of appearance. Writ petitions are disposed of. No costs. jma //true copy// Sd/- (K. VINOD CHANDRAN, JUDGE) P.A to Judge