9911796707
TMI Blog1995 (4) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 gms. worth Rs. 1,01,440. Both the types of the above ornaments were lying with the Central Excise Department. The Central Excise authority also found cash amounting to Rs. 1,60,000, of which the Director of Inspection, in pursuance of the authorisation under section 132A of the Income-tax Act, 1961, took possession from the Central Excise Department. After holding the enquiry, an order under section 132(5) of the Income-tax Act, 1961, was passed on June 24, 1985, estimating the undisclosed income in the summary manner to the best of its knowledge and calculated the amount of tax on the income so estimated and also determined other liabilities likely to arise in respect of such undisclosed assets and ordered the retention of Rs. 1,60,000. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the respondent which is under challenge in this petition before this court. Learned counsel for the petitioner urged before us that since in respect of the aforesaid articles which were the subject-matter of search which took place on February 25, 1985, regular assessment has come into existence, thereafter, no proceedings under section 132(5) or 132(1) of the Act could have been taken and the action taken by the respondents in respect of the aforesaid articles was without jurisdiction, arbitrary and illegal. It was urged on behalf of the respondents that the gold ornaments and jewellery, not being the subject-matter of seizure which took place earlier, could have been seized on their being released by the excise authorities and the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... property which has not been or would not be disclosed for the purposes of the Act. From the undisputed facts, it is apparent that as on the date of the second authorisation, under which certain ornaments are alleged to have been seized after release by the excise authorities those ornaments were found to be in the possession of the petitioner way back in February, 1985, the same was made the subject-matter of the order under section 132(5) of the Act for calculating the estimated income and the income for the assessment years 1985-86 and 1986-87 in accordance with the provisions of section 69A of the Act for calculating tax for that year. Pursuant to the orders passed under section 132(5) of the Act, taking notice of the possession of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 132(5) of the Act, is possession for and on behalf of the person from whose custody such valuables have been seized for the purpose of being treated in accordance with law when the occasion for such treatment arises, either for confiscation of the same or for utilisation of the same for satisfying the liabilities arising under any of the statutes. But in no case, it could be said that the appropriate authority under section 132 could hold belief on July 18, 1989, issue authorisation under section 132(1) after the release of the assets by the Central excise authority on the assumed belief that the petitioner was in possession of the articles in dispute which represent his undisclosed income and that the person who received the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 132 in the present circumstances. If the contention of the Revenue is accepted, the position would be that the assessee was found to be in possession of the aforesaid ornaments and jewellery in the previous year relevant to the assessment year 1985-86 and was subjected to the orders under section 132A read with section 132(5) as well as regular assessment. Once again, when the very same valuables were returned to the assessee by the Central Excise Department, it could be made the subject-matter of similar proceedings for the assessment year 1985-86. It is too obvious to be stated that the same income cannot be made the subject-matter of assessment for two different assessment years. Once the assessee was found in possession of the dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X
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