Transfer of Seized Funds to Assessing Officer Ordered

The court directed the transfer of the seized amount of Rs. 12,00,000 to the petitioner's Assessing Officer in Ahmedabad within two weeks. The petitioner was granted the right to seek a refund in accordance with the assessment order. The writ petition and related application were disposed of based on these directions, with liberty granted to the petitioner.

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Issues:
1. Seized amount release direction sought by petitioner.

Analysis:
The petitioner filed a writ petition seeking directions for the release of a seized amount of Rs. 12,00,000 along with interest. The petitioner's counsel argued that despite completing assessment proceedings and proving lawful ownership of the seized amount, the respondents unlawfully withheld the funds. It was contended that this action violated regulations outlined in a Circular by the Central Board of Direct Taxes and Section 132B(3) of the Income Tax Act, 1961. The main point of contention was the location of the seized amount, whether in Delhi or Ahmedabad.

The respondents eventually admitted that the seized amount was held in Delhi in PD Account Pr.CIT-10. Given that the petitioner's PAN was based in Ahmedabad, the court directed the transfer of the Rs. 12,00,000 to the petitioner's Assessing Officer in Ahmedabad within two weeks. The petitioner was granted the right to seek a refund of the seized amount in line with the assessment order dated 2nd November, 2010. Subsequently, the writ petition and related application were disposed of based on the aforementioned directions and liberty granted to the petitioner.

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