Court orders refund of seized bearer bonds value with interest; petitioner not liable for loss.

The court ordered the Income-tax Department to refund the petitioner the value of seized bearer bonds, amounting to Rs. 1,80,000 from 1991, along with simple interest at 6% per annum from January 1, 1992, until payment. The Department was authorized to recover the refunded amount from those responsible for the loss of the bonds. The court emphasized that the petitioner was not accountable for the lost bonds, concluding the legal proceedings regarding the seized bearer bonds.

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Issues:
Petition for the return of seized bearer bonds under Income-tax Act, 1961.

Analysis:
The petition was filed seeking the return of bearer bonds seized by the Income-tax Department under section 132 of the Income-tax Act, 1961. The bearer bonds had a face value of Rs. 10,000 each with a maturity value of Rs. 1,80,000 in the year 1991. The Department had seized a total of Rs. 10,40,635, including the mentioned bearer bonds. In response, the Department claimed that the bearer bonds were not seized from the petitioner and cited the destruction of records during an anti-Mandal agitation in September 1990, where all seized records were burnt to ashes.

Upon examination of the panchnama and a letter dated May 25, 1990, it was established that the bearer bonds worth Rs. 1,50,000 were indeed seized by the Department. The court noted that the Department had lost the seized bearer bonds and emphasized that under the law, the bonds should have either been returned or accounted for. The petitioner could not be held responsible for the loss of the bearer bonds.

As a result, the court directed the Department to refund the amount of the bearer bonds, i.e., Rs. 1,80,000 from the year 1991. Additionally, the Department was ordered to pay simple interest at the rate of 6 per cent per annum from January 1, 1992, until the actual date of payment. The Department was granted the authority to recover the refunded amount from the individuals responsible for the loss. Finally, the petition was disposed of, thereby concluding the legal proceedings related to the seized bearer bonds.

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