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2022 (8) TMI 963 - HC - Income TaxSearch u/s 132 - Entitlement refund of the seized cash which is otherwise declared ‘unaccounted money’ and taxed in the hands of the searched person - case of the Revenue that the said entry was made by the firm after the seizure of the cash and the same is clearly borne out from the said book entry itself which narrates the factum of litigation of the seized cash in the Court of CJM - HELD THAT:- It is pertinent to note that nothing has been placed on record by the writ-applicant to suggest that the proceedings undertaken by the department u/s 132 of the Act, were objected to by the writ-applicant at the relevant point of time. In fact, the inaction on the part of the writ-applicant firm as against the statement of the searched person Bhuraram Patel, AO has been made to form a reasonable belief of treating the seized cash in the hands of the searched person Bhuraram, for initiation of the proceedings under Section 153A of the Act as against Bhuraram only. It was only when the said fact was noticed in the proceedings before the Rajasthan High Court challenging the criminal proceedings arising out of Section 457 Cr.P.C. that the papers related to the writ-applicant were placed before the Revenue Department, which culminated into the reopening proceedings u/s 148 - Court further finds that the reopening proceedings in the case of the writ-applicant has been carried out in terms of Section 143(3) read with Section 147 of the Act rather than Section 153C of the Act. Again, there is no challenge to the order declaring the seized cash in the hands of Bhuraram Patel as ‘unaccounted income’ of the searched person. Even, there is no challenge to the order of penalty and the seized cash being adjusted towards the same. We find that there is no irregularity or illegality in the order passed by the Assessing Officer, treating the seized cash as ‘unaccounted income’ in the hands of the searched person Bhuraram Patel.. This Court does not find any fault with the department of having refused to release the seized amount at the relevant point of time or even the refund thereafter. At the same time, declaring the income in the case of the writ- applicant being not taxable, will not ipso facto result into refund of the seized cash, which has otherwise been realized from the searched person. It is well-settled legal position that prerogative writs under Article 226 of the Constitution can be issued only in grave cases where the subordinate tribunals or bodies or officers act wholly without jurisdiction, or in excess of jurisdiction, or in violation of principles of natural Justice, or refused to exercise jurisdiction vested in them, or there is error apparent on the face of record which has resulted in manifest injustice. As rightly observed that the legal formulations cannot be enforced divorced from the realities of the fact situation of the case. While administering law, it is to be tempered with equity, and if the equitable situation demands after setting right the legal formulations, not to take it to the logical end, the High Court would be failing in its duty if it does not notice the equitable consideration and mould the final order in exercise of its extraordinary jurisdiction. Any other approach would render the High Court a normal Court of Appeal, which it is not.
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