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TMI Blog2023 (12) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... bed by Section 131 of the Act of 1961 was duly followed. The amount seized was thereafter declared as an additional income of the petitioner followed by payment of requisite income tax and interest. There does not appear any justifiable reason to preclude the petitioner from receiving the aforesaid amount in lieu of the seized SBNs. Much prior to the appointed day, the seizure had been effected and requisite formalities had been completed. The provisions of Chapter XIII of the Act of 1961 and especially Sections 131, 132 and 132B indicate that seizure of the SBNs in the present circumstances been undertaken by a Law Enforcement Agency referred to in the proviso to Section 5 of the Act of 2017 and hence the petitioner is entitled to return of the aforesaid amount. The interests of justice and fairplay warrant issuing of such direction to the RBI, which direction would be an order envisaged by proviso (d) to Section 5 of the Act of 2017. For the aforesaid reasons, it is held that the petitioner is entitled to return of the amount of Rs. 30,00,000/- that was seized by the Election Officer on 17/11/2016. To facilitate refund of the said amount, the Reserve Bank of India is directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of currency notes of the denomination of Rs. 500/- were found and seized. The petitioner thereafter on 13/9/2017 sought refund of the amount seized on 17/11/2016 by stating that since the additional income of Rs. 30,00,000/- had been declared and the petitioner had also paid taxes on the said amount with interest, the amount of Rs. 30,00,000/- that was seized be refunded. In the Income Tax Return for the Assessment Year 2017-18, the said amount of Rs. 30,00,000/- was also indicated in his balance sheet. 3] On 20/3/2020, the petitioner received a communication from the Deputy Director of Income Tax (Inv.), Unit II, Nagpur in which it was stated that the specified bank notes (SBNs) could not be accepted for deposit without any Court orders. It is in this backdrop that the petitioner has filed this Writ Petition praying that the amount of Rs. 30,00,000/- seized by the government agencies be returned to him with interest with a further prayer that the Reserve Bank of India (RBI) be directed to accept deposit of the said currency notes that were seized from the petitioner on 17/11/2016. This is in the backdrop of the policy of demonitisation that came into force on 8/11/2016 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Year 2016-17, the said amount of cash was sought to be requisitioned from the Sub-Treasury Office, Sindewahi, District Chandrapur in whose possession and control the same had been kept. On 19/12/2016, the office of the Assistant Director of Income Tax (Inv.) - II issued a communication to the Collector, Chandrapur to issue directions to the District Treasury Office for handing over the seized cash to its office. The Collector issued such communication as requested on 28/12/2016. Since the cash was in demonitized currency notes of Rs. 500/- and Rs. 1000/-, the Branch Manager of the State Bank of India, Sindewahi refused to issue a demand draft in the name of the Principal Commissioner of Income Tax (Central), Nagpur against the said cash. Thereafter, a written request was made by the office of the Assistant Director of Income Tax (Inv.) - II to the Reserve Bank of India on 29/12/2016 for issuing such directions to the Branch Manager, State Bank of India, Sindewahi. Such instructions were issued in the evening of 29/12/2016. As the Treasury Officer was on leave on 30/12/2016, the cash could not be requisitioned on the same day and the requisition took place on the next working day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the order of the court coupled with the recent amendment of section 5, it was obligatory in the part of Respondent No 3 to accept the deposit. 8] On the other hand, the Reserve Bank of India insists on a specific order of the Court to permit deposit or exchange of the SBNs, serial numbers of which have been noted by the Law Enforcement Agency. The Act of 2017 stipulates 31/12/2016 to be the appointed day as per Section 2(1)(a) thereof. By virtue of Section 5 of the Act of 2017, on and from the appointed day, holding of, transfer or receipt of any SBN is not permissible, knowingly or voluntarily. Proviso (d) to Section 5 has been inserted with effect from 24/8/2018 and the said prohibition of holding SBNs is not prohibited at the instance of the Law Enforcement Agencies such as the Central Board of Direct Taxes on production of the documents authorizing such seizure or confiscation as the case may be. It is thus clear that by virtue of Section 5 and proviso (d) thereof, holding, transfer or receipt of any SBN is not prohibited when the same is at the instance of a Law Enforcement Agency on production of the requisite documents. 9] At this stage, we may refer to the j ..... X X X X Extracts X X X X X X X X Extracts X X X X
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