TaxTMI 
TaxTMI 
2014 (5) TMI 223
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....tment issued authorization under section 132A of the Income Tax Act, 1961 and seized such cash. Contending that such authorization was wholly illegal, the petitioner filed Special Civil Application No.15274 of 2013. Such petition came to be disposed by this Court by order dated 19.11.2013, in which it was provided as under: "5.00. Heard Mr.B.S. Soparkar, learned advocate appearing on behalf of the petitioner and Mr.Manish Bhatt, learned counsel appearing on behalf of the respondents. 5.1 At the outset, it is required to be noted that cash amount of Rs.32,64,560/- was found to be in possession of the petitioner which was finally recovered by the Police Sub- Inspector, Daria....
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....ed income of the petitioner in the AY 2014-15 is concerned, as such considering section 153A of the IT Act the same is not required to be granted. In any case, application of the petitioner for release of the cash is pending before the appropriate authority / concerned AO, Palanpur office and considering proviso to section 132B of the IT Act, it is ultimately for the concerned AO to pass appropriate order on the application of the petitioner for release of the cash. It appears that no order has been passed by the concerned AO on the application submitted by the petitioner for release of the cash seized / requisitioned. Under the circumstances, the concerned AO is to be directed to pass appropriate order in accordance with law and on merits ....
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....o the authorisation under section 132A of the IT Act, is concerned." From the above order of the Court, it emerges that the petitioner's challenge to the authorization under section 132A of the Act came to be rejected by this Court. With respect to the request of the petitioner for release of the cash so seized, the Court required the Income Tax Authorities to pass appropriate order on the application already filed by the petitioner within the time prescribed. 3. Pursuant to such order, the Assistant Commissioner passed the order dated 16.12.2013 which is impugned in this petition. 4. Learned counsel Shri Soparkar for the petitioner submitted that the authorization under section 132A itself was illegal. In any case, the Assistant Com....
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....admitted that the amount of Rs.32,64,560/- was out of your personal savings and brokerage income of diamonds, but later on your shifted your stand and explained the sale of jewellery as the source of this amount. Therefore, there is an inherent contradiction in your submissions. 3. You have in your submissions dated 12.12.2013 before the undersigned at point No.10 mentioned that "I am subject to income tax on unexplained source and I am ready to pay tax". When you yourself are admitting that the source of above funds is unexplained then how can the source be considered as explained as per the First Proviso of section 132B(1)(i) of the I.T. Act 1961. 4. In this case the tax liability can be determined only after completion of assessments f....
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....r requisitioned under section 132A may be dealt with in the following manner, namely- (i) the amount of any existing liability under this Act, the Wealth-tax Act, 1957 (27 of 1957), the Expenditure-tax Act, 1987 (35 of 1987), the Gift tax Act, 1958 (18 of 1958) (and the Interest tax Act, 1974 (45 of 1974) and the amount of the liability determined on completion of the assessment under section 153A and the assessment of the year relevant to the previous year in which search is initiated or requisition is made, or the amount of liability determined on completion of the assessment under Chapter XIV-B for the block period, as the case may be (including the penalty levied or interest payable in connection with such assessment) and in respect of....
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.... any such liability referred to in clause (I) as remains undischarged and for this purpose such assets shall be deemed to be under distraint as if such distraint was effect by the Assessing Officer, or as the case may be, the Tax Recovery Officer under authorisation from the Chief Commissioner or Commissioner under sub-section (5) of section 226 and the Assessing Officer or as the case may be, the Tax Recovery Officer may recover the amount of such liabilities by the sale of such assets as such sale shall be effected in the manner laid down in the Third Schedule." 7. From the record it emerges that the petitioner has been taking contradictory stand regarding the source of the amount. Before the police authorities, he had stated that the am....