2017 (7) TMI 211 - HC - Income Tax

Ownership of seized FDRs deferred to appellate Commissioner pending evidence examination. Petition for release denied.

The court refrained from determining ownership of the Fixed Deposit Receipts (FDRs) seized during search operations, deferring the matter to the appellate ... Seeking release the seized FDRs and unfreeze the bank accounts - Held that:- By now the assessment proceedings in the hands of father and brother both have been carried out by the Assessing Officer. Assessment orders in case of the petitioner, father and brother have all been passed by the Assessing Officer. We are informed that the Assessing Officer has held that the amount in question does not belong to the petitioner but to the father/brother. We are also informed that such assessment orders are challenged by the respective assessees before the Commissioner and such appeals are pending. In view of such developments, it is not possible in the present petition to give any findings of fact as to the source of the FDs and other related issues. We leave it to the appellate Commissioner to examine the issue on the basis of materials on record. We are sure, if request is made for early disposal of such appeal, the Commissioner would consider the same depending on the work load. Issues:Prayer for release of seized FDRs and unfreezing of bank accounts.Analysis:The petitioner, a resident of Dubai, sought the release of Fixed Deposit Receipts (FDRs) seized during search operations in Mumbai. The petitioner claimed the FDs were from personal funds, not linked to family members. Conversely, the department alleged the funds originated from the petitioner's father and brother. Assessment orders concluded the funds belonged to the father and brother, prompting the petitioner's challenge. The court refrained from determining FD ownership, deferring to the appellate Commissioner for a detailed examination based on available evidence. The petition was disposed of, awaiting resolution through the pending appeals process.