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Interim release of seized cash to the Income Tax Department was treated as a protective arrangement pending determination of its source, tax liability and ownership. The Trial Court required an indemnity bond and deposit of the amount in a nationalised bank fixed deposit with automatic renewal, preserving the parties' positions until final adjudication. The High Court found that this arrangement caused no prejudice warranting intervention under Articles 226 and 227, as all substantive issues remained open. The criminal petition challenging the interim arrangement was dismissed, while the income-tax proceedings were to be concluded expeditiously and further relief could be sought before the Trial Court.
Interim release of seized cash to the Income Tax Department was treated as a protective arrangement pending determination of its source, tax liability and ownership. The Trial Court required an indemnity bond and deposit of the amount in a nationalised bank fixed deposit with automatic renewal, preserving the parties' positions until final adjudication. The High Court found that this arrangement caused no prejudice warranting intervention under Articles 226 and 227, as all substantive issues remained open. The criminal petition challenging the interim arrangement was dismissed, while the income-tax proceedings were to be concluded expeditiously and further relief could be sought before the Trial Court.
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