TaxTMI 
TaxTMI 
2022 (3) TMI 158
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....te No.1, Padmanabhapuram, dated 03.03.2021 in Crl.M.P.No.1494 of 2021 in reference to Crime No.43 of 2021 (RP No.18 of 2021) on the file of Thuckalay Police Station and and permit the petitioner to seek custody of the seized assets ie., cash of Rs. 76,02,010/-. 2. Crl.O.P(MD)No.1241 of 2022 has been filed to allow the petition to set aside the impugned order passed in Crl.M.P.No.9990 of 2021 in Crl.M.P.No.1494 of 2021, dated 22.12.2021 on the file of the learned Judicial Magistrate No.1, Padmanabhapuram, so that the petitioner may be directed to produce two sureties with original title document to the total value of Rs. 76,00,000/- to execute the bond for the above amount. 3. The petitioner in Crl.O.P(MD)No.1241 of 2021 is the defacto....
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....e learned Judicial Magistrate No.1, Padmanabhapuram in Crl.M.P.No.1494 of 2021, dated 03.03.2021, while returning the property and by order, dated 22.12.2021, the learned Judicial Magistrate No.1, Padmanabhapuram, dismissed the petition. Challenging the same, the complainant has filed Crl.O.P.No.1241 of 2021. 4. The petitioner in Crl.O.P.No.19340 of 2021, who is the Deputy Director of Income Tax (hereinafter referred to as 'the Income Tax Authority'), has filed this petition to set aside the order passed by the learned Judicial Magistrate No.1, Padmanabhapuram in Crl.M.P.No.1494 of 2021, dated 03.03.2021 on the ground that the Income Tax Authority issued summons under Section 131 (1A) of the Income Tax Act, 1961 (hereinafter refe....
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....ressed income, under the provisions of the Income Tax Act, the Income Tax Department entitled to confiscate the entire amount as liability. That apart, the Income Tax Department is vested with powers to seize unaccounted cash and documents that contain evidence of undisclosed income under Sections 132 and 132A of the Act. In support of his contention, he relied upon the Judgment reported in (1991) 190 (TR 616 (Madras) - Babu Rao Vs. the Inspector of Police and this Court held that the Income Tax Authorities, in the eye of law, can be construed as the person entitled to seize and to have custody of the property in the shape of undisclosed income. 6. The learned counsel appearing for the complainant submitted that though the seized amount ....
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.... is seen that on the complaint lodged by the complainant, the second respondent/the Sub-Inspector of Police registered the case in Crime No.43 of 2021 for the offences under Sections 392 and 170 of I.P.C and now altered to Sections 392, 120, 120(b) and 406 of I.P.C, on the allegation that the accused persons has robed a sum of Rs. 76,40,000/- belonged to the complainant from his employees. During the course of investigation, the second respondent had arrested the accused persons and recovered a sum of Rs. 76,02,010/- and deposited the amount before the learned Judicial Magistrate No.1, Padmanabhapuram in R.P.No.18 of 2021. The complainant being the owner of the property filed petition in Crl.M.P.No.1494 of 2021 for return of cash and the....
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....cedure have become final and concluded, the Income Tax Authority is entitled to get the portion of the amount due and recoverable from the complainant. 11. In the judgment relied upon by the Income Tax Authority reported in (1991) 190 (TR 616 (Madras) - Babu Rao Vs. the Inspector of Police, already the learned Judicial Magistrate released the cash in favour of the Income Tax Authority and the same was challenged by the owner of the cash and the same was dismissed saying that the Income Tax Authorities, in the eye of law, can be construed as the person entitled to seize and to have custody of the property in the shape of undisclosed income. Whereas in the case on hand, the Income Tax Authority did not file any petition under Section 451 o....