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TMI Blog1972 (4) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount from the income-tax department under the provisions of the Income-tax Act. Their appeal is still pending before the higher authorities and they shall be free to prosecute not only this appeal but such other remedies also to which they may be entitled under the Income-tax Act - - - - - Dated:- 29-4-1972 - Judge(s) : S. R. VYAS. JUDGMENT VYAS J.-This is a reference made by the learned Sessions Judge, Indore, for setting aside an order passed by the Magistrate, First Class, Indore, with regard to the production of certain cash amount which was seized by the police under sections 54(l) and 550 of the Code of Criminal Procedure. Briefly stated, the facts giving rise to this reference are these : On February 5, 1970, Sadar Baz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... police to produce the currency notes for disposal under section 523, Criminal Procedure Code. The police, thereupon, reported their inability to produce the money as it was seized by the Income-tax Officers. The Magistrate, thereupon, issued notices to the Income-tax Officers and the Commissioner of Income-tax, Nagpur, either to produce the money or to show cause why it should not be produced. In the reply filed by the Income-tax Officers it was stated that the money was lawfully seized under the provisions of the Income-tax Act and that they were not liable to produce the money as directed. The objections raised by the Income-tax Officers were rejected by the learned Magistrate, who took the view that once the property, viz., currency n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any police officer seizes any property under section 51, Criminal Procedure Code, which is alleged or suspected to be stolen or which is found under the circumstances which create suspicion of the commission of any offence, then such seizure has to be forthwith reported to the Magistrate, who is authorised to make such orders as he thinks fit respecting the disposal of such property or the delivery of such property to the person entitled to the possession thereof. In the instant case, the police had seized the currency notes from the non-applicants, Mohammad Hanif and others, presumably on the suspicion that either it was stolen or it was found under the circumstances which created suspicion of the commission of any offence. The police acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of the Income-tax Act by a regular assessment order passed by the income-tax Officer. So much of the money as was sufficient for discharging the tax liability was retained by the income-tax authorities and the remaining amount was paid to the non-applicants in the court of the Magistrate concerned. The non-applicants have preferred an appeal against the assessment orders and if they succeed in this appeal, the Income-tax Officers shall be liable to refund that much amount which has been treated as the tax liability of the non-applicants. The question, however, raised for consideration by the non-applicants, Mohammad Hanif and others, is that the jurisdiction of the Magistrate in the matter of disposal of the seized currency notes wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an order for the refund of the entire amount so as to enable the department to make a formal application for the payment of the money. I do not think that such an order is called for in this case. If after investigation by the police it was to be found that the money was required for the enquiry into or trial of any cognisable offence, then certainly the department would have been directed to refund the amount so that the money could be subject to the orders of the Magistrate in the case under enquiry or trial before him. So far as this case is concerned, the police no more requires the money for the enquiry into and trial of any offence. When that is so, even if the money were to be deposited by the police in the Magistrate's Court the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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