The Assessing Officer received a tip-off about certain transactions happening in a famous café named, The Friends Joint, which could probably lead to some evidences he was looking for. This café was within the Assessing

According to Section 133A(2) of the Income-tax Act, 1961, an income-tax authority may enter any place of business or profession referred to in section 133A(1) only during the hours at which such place is open for the conduct of business or profession and, in the case of any other place, only after sunrise and before sunset. According to Section 133A(2A), without prejudice to the provisions of section 133A(1), an income-tax authority acting under this sub-section may for the purpose of verifying that tax has been deducted or collected at source in accordance with the provisions under sub-heading B of Chapter XVII or under sub-heading BB of Chapter XVII, as the case may be, enter, after sunrise and before sunset, any office, or any other place where business or profession is carried on, within the limits of the area assigned to him, or any place in respect of which he is authorized for the purposes of this section by such income-tax authority who is assigned the area within which such place is situated, where books of account or documents are kept and require the deductor or the collector or any other person who may at that time and place be attending in any manner to such work, - to afford him the necessary facility to inspect such books of account or other documents as he may require and which may be available at such place, and to furnish such information as he may require in relation to such matter. As per Sec 133A(3)(ia), an income tax authority acting under this Section may impound and retain in his custody for such period, not exceeding 15 days, as he thinks fit any books of account or other documents inspected by him without obtaining the approval of the Principal Chief Commissioner or the Chief Commissioner or the Principal Director General or the Director General or the Principal Commissioner or the Commissioner or the Principal Director therefor, as the case may be, In view of the above, it can be said that the Assessing Officer's action in entering the café at 12:30 PM i.e., during the hours when the café was open for business and inspecting and then impounding books of account and documents inspected by him and also retaining them in his custody for 12 days is in order. Therefore, the contention of the owner of the café that "Assessing Officer's action of entering the café is not as per the Income-tax Act, 1961" is not valid. Alternate Answer to above paragraph In view of the above, it can be said that the Assessing Officer's action in entering the café at 12:30 Night i.e., before the hours when the café was open for business and inspecting and then impounding books of account and documents inspected by him was not correct.