The central legal point established in the judgment is the requirement of application of mind by the Income-tax Officer in issuing summons under Section 131 of the Income-tax Act.

( 1 ) THIS appeal arises out of the judgment and order dated February 2, 1972, passed by Sabyasachi Mukharji J. (New Central Jute Mills Co. Ltd. v. Dwijendralal Brahmackari ). By and under the said judgment and order, his Lordship was pleased to make the rule nisi issued in the matter absolute and was pleased to quash a notice dated the 5th June, 1969, mentioned in the petition issued under Section 131 of the Income-tax Act, 1961. His Lordship made it clear that the order of his Lordship would not prevent the appellants (who were respondents in the application) from taking any step for discovery and inspection of documents mentioned in the notice under Section 131 of the Income-tax Act in accordance with the provisions of law.

( 2 ) ALTHOUGH the ambit of this appeal falls within a narrow compass we have to recite the facts leading to the making of the above-mentioned application in the writ jurisdiction of this court by the respondents in order to appreciate the issues involved herein.

( 3 ) THE respondents, New Central Jute Mills Co. Ltd. , in the said application in the court of first instance made under Article 226 of the Constitution sought to have the notice dated the 5th June, 1969, issued by the appellant-Income-tax Officer under Section 131 of the Income-tax Act, 1961, quashed and/or set aside.

( 4 ) ON or about April 11, 1963, an order was passed under Section 237 (b) (i) and (ii) of the Companies Act, 1956, for investigation of the affairs of the respondent-company. By order dated the 12th June, 1964, another co-officer of the Company Law Board was appointed as co-Inspector with co-extensive powers under Section 237 (b) (i) and (ii) of the said Act, along with the previous Inspector. Another Inspector was appointed on the 30th June, 1964, under the above section of the Companies Act in the place and stead of one of the Inspectors appointed earlier. The time to complete the investigation was extended from time to time. The said Inspector obtained order for search and seizure of the respondent's documents from the Chief Presidency Magistrate, Calcutta, District Magistrate, 24-Parganas and District Magistrate, Howrah, under Section 240a of the Companies Act, 1956, notwithstanding the respondent's request to withhold any action on their part as the respondent intended to challenge the orders of appointment by means of a writ petition. On July 21, 1964, the respondent-company moved under Article 226 of the Constitution before this Hon'ble court whereupon a rule nisi was issued by D. N. Sinha J. On July 23, 1964, his Lordship directed that all books, papers and documents seized by the said Inspectors or to be seized by the said Inspectors in terms of the order passed under Section 240a of the Companies Act would be kept in sealed boxes, sealed by the respondent-company and the said Inspectors and the said boxes would be kept in the office of the respondent No. 4, Registrar of Companies, West Bengal. The said matter was marked as Matter No. 272 of 1964.

( 5 ) INASMUCH as it was found in the course of the hearing of the said application that the Chief Presidency Magistrate, Calcutta, and the District Magistrates of 24-Parganas and Howrah were necessary parties to the said application, another application was made by the respondent-company on June 30, 1964, under Article 226 of the Constitution against the said Union of India, State of West Bengal, the said Inspectors, the Chief Presidency Magistrate, Calcutta, Sub-Divisional Magistrate, Sadar, Howrah, and District Magistrate, 24-Parganas, the Inspector appointed by order dated the 30th June, 1964, and the Registrar of Companies, West Bengal, for quashing the said orders of search and seizure passed under Section 240a of the Companies Act and for the return of the books, papers and documents seized by the said Inspectors.

( 6 ) THE Matter No. 272 of 1964 [new Central Jute Mills Co. Ltd. v. Dy. Secretary, Ministry of Finance [1966] 36 Comp Cas 512 (Cal)] was di