TMI Blog2020 (8) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... report the amount recoverable towards payment of tax etc. under the Act. The petitioner submitted a statement on 11.6.2020 intimating that assessment was completed as against the first respondent making a demand for an amount of ₹ 20,12,420/- towards tax and interest etc. It was intimated that the amount directed to be retained in JFCM Court being only ₹ 15,23,480/- was insufficient to cover the entire liability of the first respondent, assessee. It is contended that when penalty leviable under Sections 271(1)(c) is also quantified, the assessee will be liable for payment of more amount. Going through the counter affidavit filed by the first respondent, his contention appears to be that the cash seized from his possession ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entitled to apply to the learned Magistrate for release of the portion of amount due and recoverable from the first respondent under law. The amount necessary for satisfying the liability of the first respondent will have to remain in the custody of the court despite any claim being raised by parties demanding interim custody, pending finalisation of the assessment proceedings. - Crl.MC.No.2348 OF 2015 CRMP NOS.4018 & 4857/2014 - - - Dated:- 3-7-2020 - THE HONOURABLE MR.JUSTICE T.V.ANILKUMAR FOR THE PETITIONER : ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX FOR THE RESPONDENT : ADV. SRI.P.A.AUGUSTIAN BY ADV. SRI.M.A.BABY BY ADV. SRI. UDAYAKUMAR.K.B. (P.P) ORDER The petitioner, who is Assistant Director of Income Tax (Inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Magistrate under Section 451 of the Cr.P.C. seeking interim release of the cash amount. On receipt of the notice from court, the petitioner herein also filed similar petition, i.e., Cr.M.P.No.4857/2014 seeking interim release of the amount. 4. The first respondent contended that he purchased 1 kg. of gold bar from Dubai where he was employed in 2014 and had brought it to India after paying customs duty and hence it was in his legal possession. After his sister's marriage was arranged, with a view to raising requisite finance for conduct of marriage, he sold the gold brought from Dubai along with some other gold ornaments kept in his house. The gold was sold to a jeweller in Bangalore and the sale proceeds received were entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of the Act which entitled the authorities to demand for the cash seized and deposited in the Court. It is submitted that as per Section 132 A of the Act, the department is entitled to exclusive possession of the currency notes during the pendency of the assessment proceedings and the first respondent was not entitled to get any portion of the cash seized released from the court. It is contended that the inquiry conducted in the matter revealed that the cash seized from the possession of respondents 1 and 2 was unaccounted money being liable to tax and penalty under the provisions of the Act. Thus, the impugned order was sought to be quashed and the entire amount released to the petitioner as provided for by Section 132 A of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax officer, who has reason to believe that unexplained amount of cash was possessed by a person, has to apply to the court under Section 226(4) for payment of the money due under the tax. This Court by order dated 28.5.2020 has called upon the petitioner to report whether assessment proceedings have been initiated and finalised and also to report the amount recoverable towards payment of tax etc. under the Act. 12. The petitioner submitted a statement on 11.6.2020 intimating that assessment was completed as against the first respondent making a demand for an amount of ₹ 20,12,420/- towards tax and interest etc. It was intimated that the amount directed to be retained in JFCM Court being only ₹ 15,23,480/- was insuffici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et release of 60% of cash in deposit on tender of bank guarantee, therefore, requires to be modified. 15. As already referred to in Syed Abdulla Bafakky Thankgal's case supra, the appropriate remedy open to the Income Tax officer is to apply Section 226(4) of the Act for payment of money towards tax and other amounts due. That means, once the assessment proceedings have become final and conclusive, the authorities under the Act are entitled to apply to the learned Magistrate for release of the portion of amount due and recoverable from the first respondent under law. In other words, the amount necessary for satisfying the liability of the first respondent will have to remain in the custody of the court despite any claim being raised ..... X X X X Extracts X X X X X X X X Extracts X X X X
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