The Income Tax Officer has no authority to realise assets and convert them into cash till the tax liability is finally quantified by making an assessment.

1. BY this petition under Article 226 of the Constitution of India, the petitioners seek the following reliefs :

"(i) to issue a writ, order or direction, restraining respondent No. 1 from taking any action with regard to the seized documents and assets.

(ii) to issue a writ, order or direction, restraining respondent No. 1 from encashing various F.D.Rs. standing in the names of the petitioners and standing in the names of the other persons which were seized from the premises of the petitioner at the time of search dated January 12, 1995, by the income-tax authority.

(iii) to issue a writ, order or direction, directing respondent No. 1 to return a sum of Rs. 45,500 which was withdrawn from savings bank account No. 19538 of the Punjab National Bank, Eastern Kutchery Road, Meerut, on January 16, 1995.

(iv) to issue a writ, order or direction directing the respondent No. 1 to hand over the entire seized assets and documents to the assessing authority, Income-tax Officer, Ward-6, Meerut.

(v) to issue a writ, order or direction which this court may deem fit and proper in the circumstances of the case ; and

(v) to award the costs of the petition to the petitioners."

2. THE petitioners' case is that a search under Section 132 of the Income-tax Act, 1961 (hereinafter referred to us "the Act"), was conducted by the respondents on their premises on January 12, 1995. Several bank deposit receipts belonging to the petitioners were seized. A copy of the seizure memo has been annexed with the writ petition as annexure "2". It has been stated in the writ petition that no order under Section 132 has since been made. It is alleged that respondent No. 1 has illegally withdrawn a sum of Rs. 45,500 from the Savings Bank Account No. 19538 standing in the joint names of the petitioners with the Punjab National Bank, Eastern Kutchery Road, Meerut, after threatening the bank manager and that respondent No. 1 was also trying to encash the fixed deposits standing in the names of the petitioners, either individually or in the joint names. For this purpose, a letter dated March 2, 1995, a copy of which is annexure "4" to the writ petition, is said to have been addressed by respondent No. 1 to the bank. THE bank has informed the petitioners that it is under acute pressure from the Income-tax Department to make the payment of the deposit receipt certificates. A copy of the bank's letter has been annexed as annexure "6" to the writ petition. According to the petitioners, respondent No. 1 has no jurisdiction to withdraw the amount from the savings bank account or encash the deposit receipts. THErefore, this writ petition has been filed for the reliefs aforesaid.

By an interim order dated March 29, 1995, the petitioners as well as respondent No. 1, namely, the Assistant Director of Income-tax (Investigation), Meerut, were restrained from encashing various fixed deposit receipts standing in the names of the petitioners as well as in the names of other persons, which were seized from the premises of the petitioners at the time of the search on January 12, 1995.

3. IN the rejoinder affidavit filed by the petitioners, it has been stated that in spite of the interim order aforesaid, respondent No. 1, by exercising pressure on the bank got a Pay Order No. 026912 dated March 29, 1995, for Rs. 2,66,734 prepared by the bank manager in favour of the Commissioner of Income-tax, Meerut, towards encashment of various fixed deposit receipts. However, because of the interim order of this court, the pay order was not delivered to the income-tax authorities and is still lying with the bank. Learned counsel for the petitioners informs that since the fixed deposit receipts have been converted into a pay order, the money is not earning any interest since then.

4. IN the counter-affidavit filed on behalf of respondents Nos. 1 and 2, it has been admitted that the respondents attempted to get the fixed deposit receipts encashed, but did not pursue their attempts after the inter