JUDGMENT

Pathak, J. - In this and the connected writ petitions, the petitioners have challenged the validity of proceedings relating to the search and seizure of their account books and other documents u/s 132(1) of the Income Tax Act, 1961.

2. Purporting to act u/s 132(1) of the Income Tax Act, 1961, the officers of the Income Tax department raided the premises of the petitioners at Meerut on June 7 and 8, 1963, and seized and removed a large number of account books and other documents ....

3. These petitions were filed on August 23, 1963. They were allowed by a Bench of this court on March 27, 1964, on the ground that the action taken by the Income Tax authorities and officers constituted an abuse of power and was, therefore, mala fide.

4. The Income Tax Officer appealed to the Supreme Court. The Supreme Court did not agree with the view taken by this court. It observed that the allegations of the petitioners had been denied by the income tax authorities, and if this court was of the view that an investigation should be made it should have directed evidence, to be taken viva voce. The Supreme Court allowed the appeals and remanded the cases to this court for the decision of the question which remained undecided.

5. The cases have now come before us on remand. A number of applications have been made by the petitioners praying that permission be granted to produce certain witnesses and also praying that the deponents of the counter-affidavit filed in these petitions earlier should be summoned for cross-examination. While considering these applications, the question was raised whether the Income Tax department could retain the account books and other documents any longer having regard to the provisions, of Section 132(8) of the Act. Learned counsel for the Income Tax department was given time to ascertain what was the the position in this regard, and affidavits have been filed before us in the matter by the parties. We, accordingly, proceed to consider whether the account books and other documents can be retained any longer by the Income Tax department.

6. The search and seizure was effected in June, 1963. The proceeding was taken u/s 132(1) of the Income Tax Act, 1961, as it stood then. Under that provision an Income Tax Officer, specially authorised by the Commissioner in this behalf, was empowered to enter and search any building or place where he had reason to believe that any account books or other documents useful for or relevant to any proceedings under the Act may be found and to seize such account books and other documents. There was no provision then limiting the period for which the account books or documents could be retained by the Income Tax Officer,

7. Thereafter, Parliament enacted the Finance Act of 1964 (No. 5 of 1964), with effect from April 1, 1964, and Section 30 thereof substituted for the original provision in the Income Tax Act, 1961, a detailed provision respecting the powers of search and seizure. The power to search a building or place and to seize account books and other documents was detailed in Sub-section (1) of the new Section 132, and Sub-section (2) provided :

"2. The books of account or other documents seized under Subsection (1) shall not be retained by the Inspecting Assistant Commissioner or the Income Tax Officer for a period exceeding one hundred and eighty days from the date of the seizure unless the reasons for retaining the same are recorded by him in writing and the approval of the Commissioner for such retention is obtained :

Provided that the Commissioner shall not authorise the retention of the books of account and other documents for a period exceeding thirty days after all the proceedings under the Indian Income Tax Act, 1922 (11 of 1922), or this Act in respect of the years for which the books of account or other documents are relevant are completed."

Subsequently, the Income Tax (Amendment) Act of 1965 (No. 1 of 1965) was enacted with effect from March 12, 1965, and still more detailed p