2021 (4) TMI 975 - HC - Income Tax

Search and seizure proceedings - revenue seized original title deeds concerning 10 immovable properties - HELD THAT - As revenue says that the title deeds will be released to the authorized representative of the petitioner within the next two weeks. The date of release will be intimated by Mr. Anand to the counsel for the petitioner. It is made clear that before releasing the title deeds, the concerned Assessing Officer will satisfy herself as to whether the statement made before us by Mr. Gulati that the transactions, which are subject matter of the title deeds, stand disclosed in the ITRs filed for the relevant assessment years, as indicated in Annexure-R of the instant petition. Issue notice.

Summary

Issues involved:
Petitioner's grievances against search, seizure, and summons by respondent-revenue.

Analysis:
The petitioners raised several grievances against the actions of the respondent-revenue regarding search, seizure, and summons. The search of the petitioner's premises started on 26.10.2020 and continued till 30.10.2020. Two immovable properties were restrained, including the headquarter in Punjab and a storeroom in Haryana. The revenue seized original title deeds of 10 immovable properties, even though the transactions were disclosed in the income tax returns for the relevant years. The petitioner argued that the seizure was unwarranted as the transactions were already disclosed, citing Section 132(1)(c)(iii) of the Income Tax Act, 1961.

The petitioner's counsel, Mr. Gulati, emphasized that the seizure of title deeds should only occur if the income or property had not been disclosed. Since the transactions were already revealed in the income tax returns, the seizure was deemed unjustified and contrary to the Act. On the other hand, Mr. Anand, representing the respondent-revenue, acknowledged that the seizure of the title deeds should align with the provisions of Section 132(1)(c) of the Act. He assured that the title deeds would be released to the petitioner's authorized representative within two weeks, pending verification by the Assessing Officer.

Before releasing the title deeds, the Assessing Officer must confirm whether the transactions mentioned in the title deeds are indeed disclosed in the income tax returns. The court issued a notice, and the respondent-revenue accepted service. A counter affidavit is to be filed within two weeks, with a provision for a rejoinder if necessary. If the Assessing Officer decides not to release some or all of the title deeds, a formal order will be issued, allowing the petitioner to approach the court. The matter was scheduled for the next hearing on 02.08.2021.