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2018 (10) TMI 934 - HC - Income TaxValidity of proceedings initiated u/s 132A - search and seizure - non-disclosing the “reason to believe” or "reason to suspect” - Held that:- The proceedings were initiated under Section 132A of the Income Tax Act, 1961 and the authorities came to the conclusion that person who was going in train, had cash/sale proceeds with him and the Income Tax Authorities came to the conclusion that it was concealed income. Apex Court in the case of N.K. Jewellers & Anr. Vs. Commissioner of Income Tax, New Delhi [2017 (9) TMI 1299 - SUPREME COURT] found that in view of amendment in Section 132A of the Income Tax Act, 1961 by the Finance Act, 2017 “reason to believe” or “reason to suspect” was not to be disclosed to any person or authority or Appellate Tribunal. Considering the law laid down by the Apex Court, the claim of the present petitioners is not justified at all. This Court finds that the ACJM, Mandal while deciding the application of the petitioner has clearly recorded a finding, after considering the case law, that the money which has been seized by the police can always be claimed by the petitioner, after the Income Tax Department concludes its proceedings, which have been initiated by issuing notice to the petitioner. This Court finds that in case summon to the petitioner was issued under Section 131 of the Income Tax Act and petitioner has been asked to explain the amount so seized, the authorities are bound to conclude the proceedings as per law and the petitioner has all the liberty to avail remedy provided against such order being passed.
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