TMI Blog2020 (1) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... ise entitled to, after making necessary adjustments as required under law. - W.P. No. 11111 of 2019 - - - Dated:- 6-12-2019 - SRI C. PRAVEEN KUMAR AND MS. J. UMA DEVI JJ. Petitioner: Vivek Chandra Sekhar S, Nunna Satvanaravana, Nunna Pushkar Raj, Nunna Akhilesh, Sri Singamsetti Raviteja Respondent: B Krishna Mohan (Asst Solicitor General Of India), M Kiranmayee(SC For Incometax ) ORDER: (Per the Hon ble Sri Justice C. Praveen Kumar) 1) Seeking issuance of a Writ of Mandamus declaring the action of the Respondents in seizing cash of Rs., 1,50,00,000/- from the petitioners and drawing panchanama, dated 24.02.2019 and 02.05.2019, as illegal and arbitrary, the present Writ Petition came to be filed. 2) The Petitioner herein is the 3rd Petitioner and Son of Petitioner No. 2, who is the Proprietor of 1st Petitioner, which is a Proprietorship concern. 3) On reliable information that gold rates are likely to be increased in few days, the Petitioner herein along with his brother s son and his Nephew, boarded a bus to Hyderabad for purchase of gold. As 23.02.2019 was a bank holiday, being a 4th Saturday, cash which was sough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On 11.06.2019, a show cause notice was issued asking the 3rd Petitioner to show cause why penalty proceedings under Section 272A(1)(c) of the Act should not be initiated for failing to comply with the summons, dated 06.05.2019. A reply, dated 12.06.2019, came to be submitted by 3rd Petitioner enclosing the information, as called for by the 3rd Respondent in the show cause notice. The correspondence between the authorities and the petitioners went on, to which, the petitioners have been submitting documents in one form or other. It is stated that, despite submission of various documents to 3rd Respondent, continuing to withhold the cash seized from the Petitioners, lead to filing of the present Writ Petition. 7) Sri. S. Vivek Chandrasehkhar, learned counsel for the Petitioners pleads that, at the time of filing returns, the Petitioners have shown the transactions relating to the cash and also in the advance tax paid for the financial years 2019-2020. The transactions covered under the dispute was also taken into consideration. He also pleads that, in case any amount is due by the petitioners, the said amount can be adjusted and balance amount be released as it cannot be te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t No. 3 in the capacity as authorized officer has requisitioned the cash under Section 132A of the Income Tax Act and based on the material brought on record has made a confidential appraisal report which has been duly forwarded to the jurisdictional Assessing Officer for further necessary action under relevant sections of the Income Tax Act. It is said that, the case is presently lying with the jurisdictional assessing officer and the Respondent No. 3 has no authority whatsoever to release the cash after it has been deposited in PD account. It is said that pursuant to the completion of such assessments, seized/requisitioned assets are dealt with as per the provisions of Section 132B of the Act. 12) The fact that a sum of Rs.,1,50,00,000/- was seized is not in dispute. It is also not in dispute that the amount has been deposited in PD account. The case is presently with the jurisdictional assessing officer. Section 132B of the Act states that assets seized under Section 132 or requisitioned under Section 132A may be dealt with in the following manner, namely:- 132A. (1) Where the Principal Director General or Director General or Principal Director or Director or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eleased to after such adjustment, has to be forthwith released to the person from whose custody such asset was seized in accordance with the provisions of Section 132B(3). On such release of money (lying in the PD Account), the Government is also under obligation to pay interest in accordance with the provisions of Section 132B(4). . 11. In the light of the above, it has been decided that cash deposited in P.D. Accounts be strictly dealt with as under:- Where an application is made in accordance with first proviso to section 132B(1)(i) for release of seized cash and the nature and acquisition of such cash is explained to the satisfaction of the Assessing Officer, the seized cash should be released within the time limit provided under that section after adjustment of any existing liability. Where seized cash or part thereof was not released under first proviso section 132B(1)(i), the amount lying in PD account should be released within one month of passing the (search and seizure) assessment order after (i) adjusting the seized cash against any existing liability and the amount of liability determined on completion of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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