TMI Blog2022 (3) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... s rightly pointed out by the learned counsel for the complainant, the Income Tax Authority initiated proceedings under Section 132 of the Act as against the complainant for non-disclosure of the income to the tune of ₹ 76,02,010/- and the said proceeding is pending. Once the assessment procedure have become final and concluded, the Income Tax Authority is entitled to get the portion of the amount due and recoverable from the complainant. In the judgment relied upon by the Income Tax Authority reported in Babu Rao Vs. the Inspector of Police [ 1990 (11) TMI 82 - MADRAS HIGH COURT ] already the learned Judicial Magistrate released the cash in favour of the Income Tax Authority and the same was challenged by the owner of the cash and the same was dismissed saying that the Income Tax Authorities, in the eye of law, can be construed as the person entitled to seize and to have custody of the property in the shape of undisclosed income. Whereas in the case on hand, the Income Tax Authority did not file any petition under Section 451 of Cr.P.C for return of cash. The complainant filed a petition for return of cash and the same was allowed and imposed conditions. The complainant ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. The petitioner in Crl.O.P(MD)No.1241 of 2021 is the defacto complainant (hereinafter referred to as 'the complainant') and he is running a jewelry mart in the name and style as 'Kerala Fashion Jewelry' at Neyyatin Karai at Trivandrum District, Kerala State. On 19.01.2021, at about 05.30 hours, when the complainant has entrusted 1-1/2 kgs gold ornaments with his driver along with two others to hand over to his son-in-law at Tirunelveli. The said gold ornaments have been handed over to his son-in-law on receipt of ₹ 76,40,000/- as sale proceeds. At about 08.15 hours, on the same day, while they were returning in the car, waylaid by four unknown person at Karavilai, out of which, two were on police uniform, robbed the said sum of ₹ 76,40,000/- from the inmates on the car on criminal intimidation. Subsequently, the said amount was recovered from the person committed robbery. Thereafter, it was deposited in the custody of the Court in R.P.No.18 of 2021. The petitioner, being the lawful owner of the said property, filed Crl.M.P.No.1494 of 2021 for return of the cash and by order, dated 03.03.2021, the learned Judicial Magistrate No.1, Padmanabhapuram, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the Income Tax Authority submitted that the Income Tax liability is a charge upon any sum for which there is no satisfactory explanation regarding the source. If the amount seized is without any legal source and forms part of the suppressed income, under the provisions of the Income Tax Act, the Income Tax Department entitled to confiscate the entire amount as liability. That apart, the Income Tax Department is vested with powers to seize unaccounted cash and documents that contain evidence of undisclosed income under Sections 132 and 132A of the Act. In support of his contention, he relied upon the Judgment reported in (1991) 190 (TR 616 (Madras) - Babu Rao Vs. the Inspector of Police and this Court held that the Income Tax Authorities, in the eye of law, can be construed as the person entitled to seize and to have custody of the property in the shape of undisclosed income. 6. The learned counsel appearing for the complainant submitted that though the seized amount was not disclosed to the Income Tax Authority and when the Income Tax Authorities initiated proceedings under Section 132 of the Act, they are entitled for the cash only after completion of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion imposed in Crl.M.P.No.1494 of 2021, dated 03.03.2021, while returning the property and by order, dated 22.12.2021, the learned Judicial Magistrate No.1, Padmanabhapuram, dismissed the petition. Though the Income Tax Authority, by letter dated 18.06.2021 requested the learned Judicial Magistrate No.1, Padmanabhapuram, not to release the cash, they failed to file any application to implead themselves as a party in the petition for return of the cash. 9. Admittedly, the Income Tax Authority initiated proceedings under Section 132 of the Act and issued summons under Section 131(1A) of the Act and in response, he appeared for enquiry and his statement was recorded under Section 131 of the Act on 19.04.2021. In the statement, the complainant admitted that the cash belonged to him and it is his unaccounted income which has not been reported to tax. 10. As rightly pointed out by the learned counsel for the complainant, the Income Tax Authority initiated proceedings under Section 132 of the Act as against the complainant for non-disclosure of the income to the tune of ₹ 76,02,010/- and the said proceeding is pending. Once the assessment procedure have become final and conclu ..... 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