Court modifies judgment, directs retention of funds pending security provision.

The court modified the previous judgment, directing the respondents to retain a specific amount and release the balance upon the appellant providing security through a bank guarantee or immovable property. The revised order aimed to balance the retention of funds with the appellant's ability to access a portion of the seized amount.

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Issues:
1. Claim of seized amount by appellant
2. Requisition under Income Tax Act
3. Assessment proceedings against the appellant
4. Liability of the appellant under Income Tax Act
5. Release of seized amount

Claim of Seized Amount by Appellant:
The appellant claimed ownership of an amount seized by the police from a vehicle. The money was handed over to the Directorate of Enforcement, and subsequently, the Income Tax authorities issued a requisition to transfer the amount to them. The appellant approached the court seeking release of the money, which led to the current appeal.

Requisition under Income Tax Act:
The Income Tax authorities issued a notice to the appellant under Sections 132A and 131 of the Income Tax Act, requesting documents and attendance for pending assessment proceedings under Section 153A. The respondents claimed a tax liability and penalty against the appellant for multiple financial years. The total amount held by the respondents was disclosed, and a portion was already released based on a previous court order.

Assessment Proceedings Against the Appellant:
The assessment proceedings against the appellant under the Income Tax Act were pending. The court noted the uncertainty of the appellant's liability until the proceedings were completed. The authorities had initiated proceedings related to FEMA violations, which were closed after starting proceedings under the Income Tax Act.

Liability of the Appellant under Income Tax Act:
The respondents estimated the appellant's tax liability and penalty for specific financial years. The court acknowledged the difficulty in determining the exact liability until the assessment proceedings were finalized. The judgment considered the assertions made by the respondents regarding the appellant's potential liabilities.

Release of Seized Amount:
The court modified the previous judgment, directing the respondents to retain a specific amount and release the balance upon the appellant providing security through a bank guarantee or immovable property. The revised order aimed to balance the retention of funds with the appellant's ability to access a portion of the seized amount.

This detailed analysis of the judgment highlights the legal complexities surrounding the claim of seized funds, the requisition under the Income Tax Act, the ongoing assessment proceedings against the appellant, the estimated liabilities, and the conditions for the release of the seized amount.

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