S. Muralidhar, J.

1. These two writ petitions under Article 226 of the Constitution of India arise from a common set of facts and seek similar reliefs. They are, accordingly, being disposed of by this common judgment.

The parties

2. The eight Petitioners in W.P.(C) No.1180/2017 are all companies: (1) Strategic Credit Capital Pvt. Ltd. (‘SCCPL’), (2) Land Energy and Resources Ltd. (‘LERL’), (3) Land Industrial and Infrastructure Ltd. (‘LIIL’), (4) Participation Finance and Holding India Pvt. Ltd. (‘PFHIPL’), (5) Empell Fortitus Pvt. Ltd. (‘EFPL’), (6) Lionforge Intertrade Pvt. Ltd. (‘LIPL’), (7) Principal Land Reality and Development Pvt. Ltd. (‘PLRDPL’), (8) Exsto Foundation Enterprises and Reserves Ltd. (‘EFERL’). It is significant that all these 8 Petitioners have the same address i.e., A-49, Mohan Cooperative Industrial Area, New Delhi – 110044.

3. The Respondents in this petition are Ratnakar Bank Ltd. (‘RBL’) andthe Income Tax Department (‘the Department’) (Respondents 1 and 2 respectively).

4. In W.P.(C) No.2375/2017, the Petitioner is Ms. Veena Singh. The Respondents are the Director of Income Tax (Investigation)-I (‘DIT’), Assistant Director of Income Tax (Investigation), Unit 7(3) (‘ADIT’), Income Tax Officer (Investigation), Special Cell (‘ITO’) and the Bank Manager of RBL (Respondents No. 1 to 4 respectively).

Search and survey

5. Both these petitions have been filed as a result of search, seizure and survey that was undertaken under Section 132(1) of the Income Tax Act (‘the Act’) by the Department on 11th January, 2017 at the residences of Mr.Mohnish Mohan Mukkar at Satbari, New Delhi, Kailash Colony and South Extension, Part-I and Vasant Kunj in New Delhi, and on 4th February, 2017 at Chembur in Mumbai. A survey under Section 133A of the Act was conducted on 11th January, 2017 and 4th February, 2017 at Karol Bagh and Rajouri Garden Branches of RBL in Delhi, Kohinoor Magnetic Media Pvt. Ltd. and the 8 Petitioner companies [in W.P.(C) No.1180/2017] at Mohan Cooperative Industrial Estate, New Delhi, Lexis Networks LLP having offices at Barakhamba Road, Connaught Place and Kalkaji, Sahas Financial Services Pvt Ltd., Open source Consulting Pvt. Ltd., Lionforge Fracht Veranstalter Pvt. Ltd, Independent Trustee and Executor Agency India Pvt. Ltd., Kfour Consultancy Pvt. Ltd. The survey was also undertaken at the office premises of Mr.Mukkar and Mr.Venugopal Nair at Chembur Naka and Vikhroli East in Mumbai.

6. The case of the Department is that during search and survey proceedings, incriminating documents and evidences (including digital evidences such as emails, phone data, hard drives etc.) were found and seized. Before proceeding to discuss the case of the Department, it is necessary to first discuss the case of the Petitioners.

Averments in W.P. (C) 1180 of 2017

7.1 W.P.(C) No.1180 of 2017 which is by 8 Petitioner companies was filed on 8th February, 2017 and is supported by an affidavit of Mr.Praveen Pandey, a resident of 547, Saket Court Complex, New Delhi describing himself as the Authorized Representative (‘AR’) of all the 8 Petitioners.

7.2 The averments in this petition are that survey proceedings were carried out in respect of 3 companies – Lionforge Logistics Pvt. Ltd., Halcyon Asia Business Development Pvt. Ltd.and Halcyon Asia Management Strategies Pvt. Ltd. as well as Mr. Mukkar. The 8 Petitioners state that the they are not named in the survey. In para 5 of the petition,it is averred that “the said entities have no relation to Mr. Mohnish Mohan Mukkar in his personal capacity, and Mr.Mukkar is neither a shareholder nor a Director in the said companies”. It is then averred in para 6 that Mr. Mukkar was subjected to a search on 11th January, 2017 pursuant to which a restraint order under Section 132(3) of the Act was issued directing RBL to not release the bank accounts of 16 persons including the 8 Petitioner companies.

7.3 In para 7 of the writ petition, it is averred that certain letters dated 20th January