9911796707
TMI Blog1972 (10) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... m. and 10 p.m., after sending intimation to the Town Sub-Magistrate, Coimbatore. During the search, 52 items of jewellery, a foreign transistor, a khaki cloth bag and Rs. 39,880 in cash were recovered from the house of the petitioners. The petitioners were arrested and produced before the City Sub-Magistrate, Coimbatore, along with the seized articles. On September 8, 1971, they were released on bail. Subsequently, on September 13, 1971, the detective inspector, Madras, went to Coimbatore, and arrested the petitioners and produced them before the Deputy Commissioner, Crimes, Madras, as he suspected them of having committed an offence. This court directed the release of the petitioners on bail with effect from October 12, 1971. Subsequently, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 132 of the Income-tax Act, the Commissioner of Income-tax, Madras-II, has authorised the Income-tax Officer, Coimbatore City, to seize the amount of Rs. 39,880 from court deposit. He has said in his authorisation that he had reason to believe that the said sum of Rs. 39,880 represents wholly or partly income which has not been disclosed by the petitioners for the purpose of the Indian Income-tax Act. The material upon which he entertained his reason for his belief consisted of : (1) the circumstance that when the police seized the amount, there were no accounts with the petitioners, which could explain the source of the said sum of money; (2) the petitioners who were not income-tax assessees, were unable to explain the possession of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posit fulfils the pre-condition of search. The order of the court below in respect of the delivery of the cash amount to the Income-tax department is, therefore, confirmed. As regards the primary gold seized from the petitioners, it is conceded by the learned counsel for the petitioners themselves that the possession thereof by the petitioners is a violation of the provisions of the Gold (Control) Act, and that the Superintendent of the Central Excise, Gold Control Unit, is entitled to seize the same. As regards the gold jewels, the case of the petitioners is that they are brothers and undivided members of a Hindu coparcenary consisting of themselves, their father, mother, two elder brothers, one grandmother, one younger sister and four w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is attempted to be, contravened, then, he may seize:- (a) such gold along with the package, covering or receptacle, if any (and the contents thereof), in which the gold is found; (b) any other goods in which any quantity of such gold has been mixed." This section also lays down that the pre-condition of seizure is the existence in the mind of the Gold Control Officer of a reason to believe that in respect of any gold any provision of this Act has been or is being or is attempted to be contravened. If no such belief exists, the Gold Control Officer would have no power to seize. A Division Bench of the Allahabad High Court has held in Collector, Central Excise v. L. Kashi Nath, Jewellers, that the section does not permit an indiscriminate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e origin seized from them have been handed over to the court for safe custody, it is requested that the above property except those involved in the above crime number may kindly be made over to this department for taking necessary action under the provisions of the Gold (Control) Act, 1968, and the Customs Act, 1962." It is significant that in this petition no reference has been made to the department having entertained even a suspicion against the petitioners, much less a reason to believe that the petitioners were involved in smuggling goods in contravention of the Customs Act or in violation of the provisions of the Gold (Control) Act. It appears as though the police, who were discomfited by their inability to prosecute the petitioners ..... X X X X Extracts X X X X X X X X Extracts X X X X
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