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2011 (5) TMI 620 - ORISSA HIGH COURTSearch and seizure - Writ petition filed for quashing/setting aside prohibitory order passed u/s 132(3) in respect of Current Account of the petitioner-Company maintained with PNB, and for declaratory relief declaring issuance of fresh warrant of authorization and Panchanama and withdrawal of Rs. 12.39 crores from the aforesaid Current Bank Account of the petitioner by opposite party-bank authorities is illegal and without jurisdiction - maintainability of writ petition - Held that:- Firstly, When the validity of the seizure is questioned on the ground that seizure is illegal, section 132B of the Act does not come to the picture at all. Therefore, the writ petition is maintainable. On untested allegations and in absence of any findings that source of any deposit in the current bank account has not been explained or not disclosed in the regular books of account, no seizure is sustainable. Further, correctness of allegation has to be assessed in assessment. Therefore, prohibitory order issued u/s 132(3) in respect of Current Account in question without forming any belief and/or without any material to conclude that the amount deposited in the said Current Account is either wholly or partly undisclosed income of the petitioner is unsustainable in law. also, consequential action in converting the money lying in the current account into Demand Draft/pay order in favour of the CIT and withdrawing the same from the current account is also not valid in law. Income-tax Department is directed to bring back Rs. 12.39 crores along with interest accrued thereon into the current of the petitioner-Company - Writ petition allowed.
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