JUDGMENT

This appeal is directed against the judgment of the Allahabad High Court dated May 4, 1983 whereby Civil Misc. Writ Petition No. 99 of 1982 filed by the respondents was allowed and the authorisation made by the Commissioner of Income Tax (for short the Commissioner ) under Section 132-A of the Income Tax Act, 1961 (hereinafter referred to as the Act ) and the proceedings in consequence thereof were quashed. It was also directed that action of the appellants in seizing of books and documents as well as the sum of Rs. 17,353/- on December 30, 1981 was contrary to law and the same be returned to the respondents.

2. On December 25, 1981 one Vinod Kumar Jaiswal, while he was travelling from Mirzapur to Calcutta by the Kalka, Mail, was detained at Moghal Sarai Railway Station by the Government Railway Police and an attache case containing a sum of Rs. 4,63,000/- was seized from him on the suspicious that the money was stolen property or had been obtained through some other offence. A case under Section 411 I.P.C. read with Sections 41 and 102 Cr.P.C. was registered against him. An intimation about the seizure of money was sent to the Income Tax Authorities at Varanasi on December 26, 1981. On December 29, 1981 the Inspecting Assistant Commissioner, Varanasi sent an intimation about it to the Commissioner about the fact of possession of the aforesaid amount by Vinod Kumar Jaiswal and also that he did not have any papers and documents regarding ownership or possession of the amount and that no person in the name of Vinod Kumar Jaiswal was borne on the General Index Register of Income Tax Office at Mirzapur. The Commissioner issued a warrant of authorisation under Section 132-A(1) of the Act on the basis of which the Income Tax Officer sent a letter of requisition to the Station Officer Incharge Government Railway Police, Moghal Sarai requiring the Station Officer to hand over the seized sum of money to him (Income Tax Officer) who had been authorised by a warrant of authorisation to receive it. The Inspecting Assistant Commissioner, Varanasi, in exercise of his power under Section 132 of the Act, authorised search of the residential premises of Rajendra Kumar Pandey, respondent No. 2, a partner of M/s Vindhya Metal Corporation, Imamganj, Mirzapur, respondent No. 1. The Income Tax Inspector visited the premises of respondent No. 1 on December 29, 1981 and found entered in the books of account that the aforesaid amount of Rs. 4,63,000/- had been handed over to Vinod Kumar Jaiswal, who was the nephew of Santosh Kumar Gupta (Jaiswal), respondent No. 3, for being carried to Calcutta in connection with the business of the said firm. On December 30, 1981 the search party which searched the premises of respondent No. 1 carried away the sum of Rs. 17,353/- found as total balance and the books of account. After completing the investigation the Railway Police submitted the final report on January 21, 1982 wherein it was stated that the money found in possession of Vinod Kumar Jaiswal did not represent stolen property or property acquired from any offence and the said sum belonged to respondent No. 1. Prior to that, on January 1, 1982 Rajendra Kumar Pandey had filed an application before the Judicial Magistrate (Railway), Varanasi praying that the amount which belonged to the respondents and was being carried by Vinod Kumar, who was serving as a Munim with respondent No. 1, be released to the applicant or in favour of Vinod Kumar. On January 4, 1982 the Income Tax Officer requisitioned the said amount and on January 13, 1982 he filed an objection to the application submitted by Rajendra Kumar Pandey. The Judicial Magistrate, by his order dated February 3, 1982, rejected the said objection of the Income Tax Department and directed the return of money to Rajendra Kumar Pandey. The said order of the Magistrate was assailed by the Income Tax Department by filing a revision before the Allahabad High Court which was allowed by the High Court b