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2023 (6) TMI 132 - HC - Income TaxAssessment of trust v/ss trustees - Unexplained assets (money) seized - unexplained income in the hands of 2nd petitioner, the managing trustee - assessment in his individual capacity - scope and authority of the 2nd respondent to requisition the assets under clause (c) to sub- section (1) to Section 132A - HELD THAT:- Trust is an independent assessable unit for the purpose of income tax and distinct from the trustee viz., 2nd petitioner herein, who is subject to assessment in his individual capacity. A look at the facts would show that to resolve the controversy raised in the writ petition and to direct the return of the seized money, would necessarily require this court to examine the title over the assets seized from 2nd petitioner herien viz., whether it belongs to 1st or 2nd petitioner. Income Tax Department having already proceeded to find that the money seized belongs to the 2nd petitioner and having treated the same as income in the hands of the 2nd petitioner and orders of assessment having been made against the 2nd petitioner which is also the subject matter of challenge, it appears that examining the validity of the seizure would necessarily lead one to the question as to title of the assets seized from the 2nd petitioner which would think may not be appropriate in the light of the subsequent development viz., order of assessment in the name of the 2nd petitioner and the challenge to it by way of appeal inasmuch as there is no challenge to the order of assessment which is before this court and thus yet another reason which prompts me to think that it may not be appropriate to entertain the writ petition inasmuch as question of title over the assets/monies is essentially a question of fact which ought to be decided on the basis of the evidence which is to be let in and appreciation of such exercise is beyond the realm of jurisdiction under Article 226 of the Constitution of India. Writ petition cannot be entertained. However, it would be open to the petitioners to avail the statutory remedy against the impugned proceeding rejecting the petitioners claim for return of the assets (money) seized.
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