Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
Inherited property sale proceeds require capital-gains treatment where ownership is supported by evidence, not suspicion or unverified signature doubt...
Cross-examination of retracted statements is essential where foundational evidence supports a benami allegation and documented funding explanations re...
Capital-goods exemption covers plant-modernisation accessories, while the import restriction applies only to earlier capital-goods components and spar...
Constitutional judicial review permits challenges to ECIRs and connected money-laundering proceedings where coercive action affects fundamental intere...
A bank cannot freeze a customer's account on its own initiative merely because transactions appear inconsistent with declared income. The Court held that, absent a complaint, criminal proceeding, recovery action, competent authority order, or lawful lien, the bank had no legal foundation to assume an investigative role or deny operation of the current account. It further held that the Prevention of Money Laundering Act and RBI suspicious transaction reporting instructions do not authorise freezing the entire account; at most, the statute contemplates action by the competent authority under the statutory scheme. The freezing was therefore arbitrary, violated natural justice and the right to carry on business and livelihood, and the account was directed to be de-frozen forthwith.
A bank cannot freeze a customer's account on its own initiative merely because transactions appear inconsistent with declared income. The Court held that, absent a complaint, criminal proceeding, recovery action, competent authority order, or lawful lien, the bank had no legal foundation to assume an investigative role or deny operation of the current account. It further held that the Prevention of Money Laundering Act and RBI suspicious transaction reporting instructions do not authorise freezing the entire account; at most, the statute contemplates action by the competent authority under the statutory scheme. The freezing was therefore arbitrary, violated natural justice and the right to carry on business and livelihood, and the account was directed to be de-frozen forthwith.
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