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2020 (8) TMI 444 - HC - Income TaxUnexplained cash - seized cash from one Selvaraj - Excise officials have seized cash from Selvaraj on the basis of which a crime has been registered - Whether department has no right to hold the seized cash, the same will be returned to the court? - Magistrate has declined the application of the petitioner for interim custody of the money due to the pendency of proceedings in the Income Tax Department - HELD THAT - Income Tax Department has not initiated any proceedings against the petitioner. Though Mr. Selvaraj has not responded to the summons issued, he has filed a statement to the effect that he has no objection in releasing money to the petitioner. The said Selvaraj is illiterate and a resident of Tamil Nadu. If the money does not belong to him, naturally he may not respond to the summons. In the circumstances, to meet the ends of justice, it is necessary that this Court pass appropriate orders on interim custody of the amount. Accordingly, the writ petition is disposed of directing the petitioner to file an undertaking before the Judicial First Class Magistrate's Court-I, Palakkad to the effect that if the amount of ₹ 10,00,000/- is released by the Income Tax Department, the petitioner shall produce the said amount before the Judicial First Class Magistrate's Court-I, Palakkad as and when required by the court. If the petitioner approaches the additional 4th respondent-Deputy Commissioner of Income Tax, Central Circle, Thrissur, along with a copy of the said affidavit and executes a bond with the Deputy Commissioner to the effect that the petitioner shall make available the said amount of ₹ 10,00,000/- as and when the Department of Income Tax initiates any proceedings on the issue and requires the petitioner to deposit the said amount.
Issues:
1. Petitioner seeking the return of seized amount by Excise officials. 2. Dismissal of application under Section 451 Cr.P.C. by Magistrate. 3. Allegation of lack of response from employee and Income Tax Department. 4. Petitioner's plea for the return of the amount from Income Tax authorities. Analysis: 1. The petitioner requested the return of the seized amount by Excise officials, which was in possession of the local police after being seized from his employee while traveling. The petitioner sought the intervention of the court to direct the Principal Chief Commissioner of Income Tax and the Director General of Income Tax to return the amount, which he claimed belonged to him originally. 2. The Magistrate initially dismissed the petitioner's application under Section 451 Cr.P.C. for the return of the money, citing the non-appearance of the employee despite summons. However, upon the petitioner's appeal to the High Court, the Magistrate was directed to reconsider the application, taking into account the circumstances and the employee's statement expressing no objection to releasing the money to the petitioner. 3. The petitioner highlighted that the employee, who was a resident of Tamil Nadu and illiterate, had not responded to the summons issued by the Magistrate's Court. Despite the lack of response, the employee stated that he had no objection to the money being returned to the petitioner. The Income Tax Department had not initiated any proceedings against the petitioner, and the petitioner provided proof of the source of the funds. 4. The High Court observed that the Income Tax Department had not taken any action against the petitioner, and the employee's lack of response to the summons could be attributed to his circumstances. To ensure justice, the court directed the petitioner to file an undertaking before the Magistrate's Court to return the amount if released by the Income Tax Department. The petitioner was instructed to approach the Deputy Commissioner of Income Tax with a bond to make the amount available if required by the department, leading to the release of the seized amount within a specified timeframe.
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