TMI Blog2014 (5) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... urce of the asset was not explained as required under the first proviso to section 132B(1)(i) of the Act – thus, there was no infirmity in the order – Decided against Assessee. - SPECIAL CIVIL APPLICATION NO. 736 of 2014 - - - Dated:- 23-1-2014 - MR. AKIL KURESHI MS SONIA GOKANI, JJ. B.S. Sopankar for the Petitioner ORDER Akil Kureshi, J. Petitioner has challenged an order dated 16.12.2013 as at Annexure A to the petition, passed by the Assistant Commissioner of Income Tax, Palanpur. Brief facts are as under: 2. On an information received from Dariapur Police Station by the investigating team of the Income Tax Department that the petitioner was detained by the police with cash of Rs.32.64 lacs (rounded off), the Department issued authorization under section 132A of the Income Tax Act, 1961 and seized such cash. Contending that such authorization was wholly illegal, the petitioner filed Special Civil Application No.15274 of 2013. Such petition came to be disposed by this Court by order dated 19.11.2013, in which it was provided as under: 5.00. Heard Mr.B.S. Soparkar, learned advocate appearing on behalf of the petitioner and Mr.Manish Bha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcumstances, the concerned AO is to be directed to pass appropriate order in accordance with law and on merits on the application submitted by the petitioner for release of the cash seized / requisitioned considering proviso to Sub-section (1) of Section 132(B) of the IT Act. 6.00. In view of the above and for the reasons stated above, so far as challenge to the authorisation under section 132A of the Act and requisition / seizure of Rs.32,64,560/- is concerned, present petition is dismissed. However, considering the fact that no order has been passed by the concerned AO on the application submitted by the petitioner to release the cash requisitioned / seized, considering the proviso to section 132B of the AO (Palanpur office) is hereby directed to pass appropriate order on the said application in accordance with law and on merits considering proviso to section 132B of the IT Act, within a period of 12 weeks from today. It is observed that, in case, the proceedings are transferred to any other AO, in that case the concerned AO at Palanpur to transfer the application of the petitioner to the concerned AO and the concerned AO to pass appropriate order on the application submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - was sent to you by your father after selling jewelery of your family members, but no evidence for sale of jewellery has been brought on record. 2. In your statement before the police authorities recorded you had admitted that the amount of Rs.32,64,560/- was out of your personal savings and brokerage income of diamonds, but later on your shifted your stand and explained the sale of jewellery as the source of this amount. Therefore, there is an inherent contradiction in your submissions. 3. You have in your submissions dated 12.12.2013 before the undersigned at point No.10 mentioned that I am subject to income tax on unexplained source and I am ready to pay tax . When you yourself are admitting that the source of above funds is unexplained then how can the source be considered as explained as per the First Proviso of section 132B(1)(i) of the I.T. Act 1961. 4. In this case the tax liability can be determined only after completion of assessments from A.Y.2008-09 to A.Y. 2013-14 u/s.153A of the I.T. Act 1961 and also regular assessment of A.Y.2014-15. 5. In this case penalty proceeding may also be initiated u/s 271AAB wherein penalty could be levied not less than thirty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of any existing liability referred to in this cause may be recovered out of such asset and the remaining portion, if any, of the asset may be released, with the prior approval of the Chief Commissioner or Commissioner, to the person from whose custody the assets were seized. Provided further that such asset or any portion thereof as is referred to in the first proviso shall be released within a period of one hundred and twenty days from the date on which the last of the authorisations for search under section132 or for requisition under section 132A as the case may be, was executed. (ii) If the assets consist solely of money, or partly of money and partly of other assets, the Assessing Officer may apply such money in the discharge of the liabilities referred to in clause (i) and the assessee shall be discharged of such liability to the extent of the money so applied. (iii) The assets other than money may also be applied for the discharge of any such liability referred to in clause (I) as remains undischarged and for this purpose such assets shall be deemed to be under distraint as if such distraint was effect by the Assessing Officer, or as the case may be, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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