JUDGMENT :

M.R. Shah, J.

As the common question of law has arisen in both these petitions, they are heard and disposed of by this common judgment and order.

2. In both these petitions under Article 226 of the Constitution of India, the respective petitioners have prayed for an appropriate writ, order or direction to quash and set aside the impugned notice at Annexure-A to the petitions, by which proceedings are initiated against the respective petitioners of Block Assessment under section 158BD read with section 158BC of the Income-tax Act, (hereinafter referred to as “the Act”).

3. The facts leading to the present petitions in nut-shell are as under:

4. That a search was conducted under section 132 of the Income-tax Act in the case of Malpani Groups. During the course of search in Malpani Groups, a locker key was found at the residence of Shri Surjanath Sidh. It was found that the locker in Oriental Bank of Commerce was in the name of Shri Pursottam Mundra, who was an employee of said Surajnath Sidh. During the course of search, in locker, certain dishonoured cheques were found and seized. Out of these, the major dishonoured cheques were found to be in respect of Raju Fabrics, Roopan Textiles and Rahul International of Rs. 45 lacs, Rs. 15 lacs and Rs. 45 lacs, respectively. That the details were called from the Bank, to which the cheques belonged to, regarding the account holders. The copy of the bank statements were also called for from the banks. From the copy of the bank accounts called for, it was observed that a huge amount of cash was deposited and the cheques have been issued. The said cheques were from the accounts of Rahul International and Roopa Textiles and were mostly issued in the names of (i) Gunjan Exports, (ii) Raju Fabrics and (iii) Aditya Yarn Pvt. Ltd. On further enquiry, during the search, the address given in the bank accounts were found to be bogus except in the case of Rahul International, Prop. Shri Dilip v. Makwana. During the course of statement under section 131 of the I.T. Act, the aforesaid Shri Dilip v. Makwana stated that he has been working as a peon in the office of Shri Rajendra Goyal, Director of Goyal Industries Ltd. (hereinafter referred to as “the petitioner”). He admitted that the account in The Udhna Citizen Co. Op. Bank Ltd., Ring Road, Surat was opened at the instruction of Shri Satyanarayan Sharma @ Dayma, who was the manager of Goyal Industries Ltd. He also admitted that the blank cheques were signed by him at the instruction of Shri Satyanarayan Sharma. He stated that he has no knowledge regarding the deposit of cash or issue of cheques in the said account. In the circumstances, the statement of Shri Satyanaayan Sharma was recorded by issuing of summons under section 131 of the I.T. Act. As the department’s case, said Shri Sharma stated that he was working as manager in the Goyal Industries Ltd. and the bank accounts which were in the name of Rahul International Prop. Shri Rahul Chopra, Rahul International Prop. Shri Dilip Makwana, Roopa Textiles Prop. Shri Rajesh Nath and Raju Fabrics Prop. Shri Satyanarayan Dayma, were operated by him on the instruction of Shri Rajendra Goyal (Director of Goyal Industries Ltd.). During the interrogation, said Shri Satyanarayan Sharma confirmed that he was working as manager in the Goyal Industries Ltd. i.e. Shri Rajendra Goyal, but two concerns namely Raju Fabrics and Gunjan Exports were being run as his proprietary concerns and the books of accounts were being written at he office of Shri Rajendra Goyal, Director of Goyal Industries Ltd. He also stated that the cash deposited in the accounts of Rahul International and Roopa Textiles was actually given to him by the aforesaid Rajendra Goyal, Director of Goyal Industries Ltd. He also stated that he was actually handling all the bank accounts of the group at the instruction of Shri Rajendra Goyal. I