Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (11) TMI 238 - MADRAS HIGH COURTInvocation of 153A & 153C - cash seized during assembly election - entitlement to exception u/rule 112F(ii) of the Income Tax Rules, 1962 - after the Tamil Nadu State Assembly Election Model Code of Conduct was in force, the Tamil Nadu State Survelliance Team (SST) intercepted two persons, working at the Bank of Baroda as Joint Manager and as correspondent, who were found carrying cash in a vehicle As on the date when the cash was seized Tamil Nadu State Assembly Model Code was in operation and therefore AO cannot issue notice for assessing and reassessing the total income for six assessment years immediately preceding the assessment - HELD THAT:- A reading of the facts and statement given by the petitioner and the statements of Bank Officer, Joint Manager, Mr.Unnikrishnan, makes it clear that the practice of the petitioner as the president of the Trust running the college was to credit the salary of staffs/employees into their personal savings account and thereafter withdraw the same by collecting self drawn cheques duly signed by them. The statement that was given by the petitioner was retracted only at a later point of time. The seizure of cash on 10.03.2021 from the possession of Mr.Unnikrishnan and Mr.Swaminathan merely coincided with the implementation of the Tamil Nadu State Assembly Model Code for the ensuring Tamil Nadu Assembly Election. The exception under Rule 112 F (ii) of the Income Tax Rules, 1962 will apply only where the assets so seized or requisitioned are in any manner connected with the ongoing election in an assembly or Parliamentary constituency. This exception is not applicable to the facts of the case, as records indicate that it was the practice of the petitioner to withdraw the cash of staffs/employee atleast from January 2021, if not before as is evident from the statement of Mr.Unnikrishnan on 10.03.2021. Merely because, search was conducted or requisition was made when the Tamil Nadu State Assembly Model Code of Conduct from the State Assembly Election in Tamil Nadu was in force could not mean the issuance of notice u/s 153 A or Section 153C would be automatically excluded and exception under Rule 112F(ii) of the Income Tax Rules, 1962 would get triggered. Unless, the cash that was seized was in connection with the assembly election, question of excluding the petitioners from the purview of proceeding under Section 147, 153A/153C of the Income Tax Act, 1961 cannot be countenanced. Decided against assessee.
|