# M/s Das's Friends Builders P. Ltd v. Dy. Commissioner of Income Tax, Agra & ors - **Citation:** (2002) 2 ILRA 402 - **Court:** High Court of Judicature at Allahabad - **Decided:** 2002-03-13 - **Bench:** S.K. Sen, C.J. R.K. Agarwal - **Source:** https://unisonlegal.in/judgment/allahabad-high-court/m-s-das-s-friends-builders-p-ltd-v-dy-commissioner-of-income-tax-agra-ors-39897 - **Pages:** 2 ## Headnote U.P. Trade Tax Act- sub section (3-A) of Section 13- there is no scope for retaining such account, register or other documents seized for a period beyond thirty days from the completion of all the proceedings under the Act in respect of the relevant year in question. (Held in para 5). Admittedly, the assessments for the year 1999-2000 in respect of those documents and books of account, which are relevant, have already been completed and the assessment order has also been passed on 13.3.2002. The period of thirty days shall expire on 12.4.2002. In that view of the matter, it is not open for the respondents to retain the said documents and books of account seized from the petitioner by 12.4.2002. So far as the assessment for subsequent period is concerned the department shall be at liberty to proceed in accordance with law and it will be open to the writ petitioner to take all steps as he may be advised. ## Text INDIAN LAW REPORTS ALLAHABAD SERIES [2002 402 was partner of the firm and the debts and assets of the individual partner can be made liable and creditor can proceed for recovery of the amount from the partner to the extent of his share. 5. In the instant case, admittedly, the writ petitioner was partner of the firm when the said debt or liability was incurred and therefore, even if subsequently, he retired from the firm, he is liable for the debt of the firm incurred before his retirement. We do not find any merit in the writ petition and the writ petition stands dismissed. The application for interim relief also stands rejected. --------- ORIGINAL JURISDICTION CIVIL SIDE DATED: ALLAHABAD 13.03.2002 BEFORE THE HON'BLE S.K. SEN, C.J. THE HON'BLE R.K. AGARWAL, J. Civil Misc. Writ Petition No. (Tax) 411 of 2002 M/s Das's Friends Builders Private Limited ...Petitioner Versus Deputy Commissioner of Income Tax Circle-I (2), Agra ...Respondents Counsel for the Petitioner: Sri Sah O.P. Agarwal Sri Rohit Agarwal Counsel for the Respondent: Sri A.N. Mahajan S.C. Section 148-149 of Income Tax Act- reasons are to be recorded before issuing any notice- the reapons recorded in this case are relevant for forming a reasonable belief that the income has escaped assessment to tax. (Held- para 3) We have perused the reasons recorded by the Assessing Authority for initiating the proceedings under Section 147 of the Act and are of the view that the reasons recorded are relevant for forming a reasonable belief that the income has escaped assessment to tax. In that view of the matter, we do not find any merit in the contentions of the learned counsel for the petitioner. The writ petition fails and is accordingly stands dismissed and the application for interim relief is also rejected. (Delivered by Hon'ble S.K. Sen, C.J.) 1. Heard Shri A.N. Agarwal learned counsel for the petitioner and Shri A.N. Mahajan learned additional Standing Counsel for the respondents. 2. The contention of the learned counsel for the petitioner is that it is incumbent upon the Revenue to record reasons before issuing any notice under Section 148 of the Income Tax Act, 1961. We find in this case that before issuing the notice on 12.5.2000, adequate reasons have been recorded which have also been given to the petitioner vide letter dated 26.2.2002 after the petitioner had filed the return. The reasons recorded by the Assessing Authority for initiating the proceedings under Section 147 of the Act are reproduced below: "For the detailed reasoning given in the assessing order U/s 143(3) dated 20.3.2000 for A.Y. 1997-98, the total unexplained investment in the Friends Apartment was determined at Rs.2,86,77,365/- relating to F.Y. 1994-95 to 1998-99 (A.Y. 1995-96 to 1999-2000). 2 All] M/s Das's Friends Builders P. Ltd. Vs. Dy. Commissioner of Income Tax, Agra & ors. 403 (2) The above total unexplained investment of Rs.2,86,77,365 in the Friends apartment, also includes an unexplained investment of Rs.40,89,856/- relating to the period of A.Y. 1996-97. In this case original assessment U/s 143(3) was completed on 18.12.1998 where the unexplained investment of Rs.40,89,856/- has not been considered. Therefore, unexplained investment U/s 69 of Rs.40,89,856/- relating to the A.Y. 199697 has to be added in the total income. (3) In view of the above facts I have reason to believe that unexplained investment U/s 69 of Rs.40,89,856/- relating to the A.Y. has escaped the assessment. (4) Issue notice U/s 148(1)" 3. We have perused the reasons recorded by the Assessing Authority for initiating the proceedings under Section 147 of the Act and are of the view that the reasons recorded are relevant for forming a reasonable belief that the income has escaped assessment to tax. In that view of the matter, we do not find any merit in the contentions of the learned counsel for the petitioner. The writ petition fails and is accordingly dismissed and the application for interim relief is also rejected. --------- ORIGINAL JURISDICTION CIVIL SIDE DATED: ALLAHABAD 05.04.2002 BEFORE THE HON'BLE S.K. SEN, C.J. THE HON'BLE S. RAFAT ALAM, J. Civil Misc. Writ (Tax) Petition No. 1009 of 2002 M/s Polar Industries Limited ...Petitioner Versus The Assistant Commissioner (S.I.B.) and another ...Respondents Counsel for the Petitioner: Sri M. Manglik Counsel for the Respondents: Sri S.P. Kesarwani S.C. U.P. Trade Tax Act- sub section (3-A) of Section 13- there is no scope for retaining such account, register or other documents seized for a period beyond thirty days from the completion of all the proceedings under the Act in respect of the relevant year in question. (Held in para 5). Admittedly, the assessments for the year 1999-2000 in respect of those documents and books of account, which are relevant, have already been completed and the assessment order has also been passed on 13.3.2002. The period of thirty days shall expire on 12.4.2002. In that view of the matter, it is not open for the respondents to retain the said documents and books of account seized from the petitioner by 12.4.2002. So far as the assessment for subsequent period is concerned the department shall be at liberty to proceed in accordance with law and it will be open to the writ petitioner to take all steps as he may be advised.