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2017 (10) TMI 1162 - TELANGANA & ANDHRA PRADESH HIGH COURTLegality of amount seized lying in Canara bank - refusing to release an amount of ₹ 5 Crores from out of the seized amount - consequential benefits under the PMGKY Scheme - Held that:- As pointed out earlier, the amount taken away from the current account of the petitioner was ₹ 36.98 Crores. Out of the said amount, a sum of ₹ 20 Crores has been disclosed under the PMGKY Scheme. If the declaration filed by the petitioner under Section 199C is accepted by the department, the department will have to do two things, viz., (a) to release the amount of ₹ 5 Crores; and (b) to allow the petitioner to encash the amount of ₹ 5 Crores invested in RBI bonds under Section 199F. In other words if the declaration under PMGKY Scheme is accepted by the department, the petitioner will get release of ₹ 5 Crores. Though according to the petitioner the department will be left with a surplus of ₹ 16.97 Crores, even after the release of ₹ 5 Crores, the case of the department is that they left only with a sum of ₹ 5 Crores after releasing a sum of ₹ 5 Crores, after adjusting the amount payable under all heads for all these years. Therefore, we are of the considered view that the release of ₹ 5 Crores will not hamper either any investigation or further proceedings on the part of the department. There is also one more aspect. If the declaration under PMGKY Scheme is accepted by the department, the petitioner will not only get immediate release of ₹ 5 Crores, but will get RBI bonds encashable after four years to the total value of ₹ 5 Crores together with interest. The amount lying in RBI bonds, if allowed to be retained as security for any eventuality, till the conclusion of all the proceedings, the departments interest will be more safeguarded, even if they release the amount of ₹ 5 Crores. Therefore, in fine, the writ petition is disposed of directing the respondents to release an amount of ₹ 5 Crores to the petitioner within two weeks. The amount of ₹ 5 Crores lying in RBI bonds, shall be kept by the department as security for the release of the amount hereby ordered, until the conclusion of any proceedings pending or to be initiated by the department. If the declaration under PMGKY Scheme is finally accepted, the RBI bonds may also be released to the petitioner, provided no other dues are found payable by the petitioner.
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