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2018 (2) TMI 187 - HC - Income TaxCommission of error by court below in passing the impugned order so far as Exh. 3 filed by the department - applicability of provisions of Section 132 - Held that:- Under Section 132 on a requisition being made under Sub-section (I), the officer or authority referred to in Clause (a) or Clause (b) or Clause (c), as the case may be, of the subsection shall deliver the books of account, other documents or assets to the requisitioning officer either forthwith or when such officer or authority is of the opinion that it is no longer necessary to retain the same in his or its custody. Once the warrant of authorization is issued against any person, then the seized amount is required to be retained by the Income Tax Authority and without taking over of the said amount, no further proceedings can be started against any person, from whose custody the amount was recovered. The Lower Court has not properly appreciated the provisions of Section 132 of the Income Tax Act and rejected the claim of the applicant. This application succeeds and is hereby allowed. The order passed by the J. M. F. C, Kathor below Exh. 3 is hereby quashed and set aside. It is declared that the department is entitled to retain the cash till the final conclusion of the proceedings under the Income Tax Act. The Investigating Officer is permitted to handover the Muddamal currency notes amounting to ₹ 13,00,000/- (Thirteen Lakh) to the applicant-Deputy Director of Income Tax (Investigation), Unit-II, Surat at the earliest. It is clarified that prior to handing over the Muddamal currency notes, the Investigating Officer shall get the videography of the currency notes done as provided in the decision in the case of Sunderbhai Ambalal Soni vs. State of Gujarat, [2002 (10) TMI 773 - SUPREME COURT], and if necessary, to carry out the Panchnama with the serial numbers of the currency notes, if not already done. A copy of the Panchnama or the videography be placed before the court concerned and the same shall be furnished to the Income Tax Department so also to the respondent No. 2-original first informant. The applicant-department shall be free to undertake all actions permitted under the law, however, he shall make the Fixed Deposit of the entire amount of ₹ 13,00,000/- with any Nationalized Bank within a period of four weeks from the date of taking over such Muddamal currency notes, initially for a period of two years and, thereafter, the same shall be renewed from time to time till the finalization of such proceedings initiated by the applicant-department. Any appropriation, if, is to be made, the same shall be made only with the prior permission of this Court.
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