2025 (2) TMI 613 - HC - Income Tax

Petitioner seeking the return of gold ornaments - appropriate amount to be paid to the Petitioner the liability of the Bank of Maharashtra - HELD THAT - We are assured that the rest of the items of the Tax Department are found to be safe and tallied in the bank s strong room/vault and further this has been the first incident we do not wish to pursue this matter any further. We record that Mr. Sancheti the learned Senior Advocate for the Bank and Mr. Suresh Kumar the learned counsel for the Income Tax Department have adopted a most reasonable approach in the matter which requires to be appreciated. They have not only done their best to protect the interest of the parties to whom they represent but as officers of this Court they have also ensured that no injustice is caused to the Petitioner. Accordingly we record our appreciation for their role in this matter. But for them we are not too sure whether their clients would have adopted or agreed to adopt such a reasonable course in this matter. Accordingly from out of the amount of Rs. 70, 00, 000/- deposited in this Court the Petitioner is granted liberty to withdraw an amount of Rs. 60, 00, 000/-. Petitioner should provide the bank details to the Registry and the Registry should as early as possible and in any event within a maximum of a week from Petitioner s applying the bank details transfer this amount into the Petitioner s bank account. Petitioner can receive this amount without prejudice to his rights to pursue ordinary remedies should the Petitioner still have any grievances. Registry to return balance amount of Rs. 10, 00, 000/- to the Bank of Maharashtra since to overcome administrative difficulties it is the bank which deposited the entire amount of Rs. 70, 00, 000/- though our direction was that this amount should be split up equally between the Tax Department and the Bank. Petition is disposed of in the above terms without any costs order. Still now that the CBDT and the CMD of the Bank have taken cognizance of this incident we sincerely expect that they take such cognizance to its logical conclusion so that such incident do not recur and citizens are not forced to run from pillar to post or approach the Courts of law for even securing their just entitlements.

Summary

The High Court of Bombay recently issued a judgment in a case involving the Bank of Maharashtra and the Income Tax Department, with the Petitioner seeking the return of gold ornaments. The core legal questions considered in this judgment include the appropriate amount to be paid to the Petitioner, the liability of the Bank of Maharashtra, and the actions to be taken to prevent similar incidents in the future.The Court heard arguments from both parties and noted that an amount of Rs. 70,00,000 had been deposited in the Court, with discrepancies in the valuation of the gold ornaments. The Bank of Maharashtra submitted an affidavit confirming the safety of other items in the strong room and expressing willingness to pay compensation to the Petitioner as directed by the Court.The Court appreciated the reasonable approach taken by the Bank and the Income Tax Department in resolving the matter and ensuring no injustice to the Petitioner. Consequently, the Court granted the Petitioner liberty to withdraw Rs. 60,00,000 from the deposited amount, with the remaining Rs. 10,00,000 to be returned to the Bank of Maharashtra. The Petitioner was allowed to pursue further remedies if necessary.In conclusion, the Court disposed of the petition without costs and emphasized the importance of the authorities addressing the incident to prevent future occurrences and ensure citizens' entitlements are secured without resorting to legal action. The judgment serves as a reminder for all parties involved to act upon the Court's order for the resolution of the matter and the prevention of similar incidents.