TaxTMI 
TaxTMI 
TaxTMI 
2023 (11) TMI 238
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....285 of 2022, the petitioner is aggrieved by the impugned order dated 26.03.2022 bearing Reference Nos. ITBA/COM/F/17/2021-22/1041682025(1) passed by the second respondent, the Director General of Income Tax (Investigation), Chennai. Both the impugned orders have been passed by the second respondent under Rule 112(F) of the Income Tax Act, 1962. 4. These impugned orders have been passed pursuant to an applications both dated 25.02.2022 filed by the respective petitioners under Rule 112(F) of the I.T.Act,1962. Both the impugned orders passed by the second respondent under Rule 112 of Income Tax Rules, 1962 read identically. 5. Relevant portion of the impugned order, reads as under:- In this regard attention is drawn to the Circular No.10/2012 [FNo.282/22/2012-IT (INV.V] dated 31.12.2012, issued by the CBDT on this issue wherein it has been stated that "4. In such cases, the officer investigating the case, with the approval of the Director General of Income Tax, Shall certify that i. the search is conducted under Section 132 or the requisition is made under Section 132A of the Act in the territorial area of an assembly or parliamentary constituency in respect of which a notific....
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.... Chordia out of the salary credited in the bank accounts of the employees of the Trust St.Antony Educational and Social Society. Thus, evidences have been found which show that salary expenses paid to the employees of the Trust St.Antony Educational And Social Society are inflated and are received back in cash by the assessee Shri D.Prakashull Chordia. This issue requires investigations for Assessment Years preceding Assessment Year relevant to the previous year in which the search was conducted. Therefore, the case of the assessee is not covered by the above Circular of the CBDT dated 31.12.2012 in view of para 4(iii) of this Circular. In view of the above discussion, I hold that the case of the assessee is not covered under Rule 112 F and the petition of the assessee seeking relief under this Rule is hereby rejected. 7. In support of the present case, the learned counsel for the petitioner has placed reliance on the decision of the Hon'ble Supreme Court in Commissioner of Income Tax and Another vs. S.V.Gopala Rao and Others, (2018) 13 SCC 189, wherein it has been held that a circular cannot amend the rules having statutory force. 8. In para-8 of the affidavit, the petitioner h....
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....itted that in such cases, the officer investigating the case, with the approval of the Director General of Income Tax, shall certify that- (i) the search is conducted under Section 132 or the requisition is made under Section 132A of the Act in the territorial area of an assembly or parliamentary constituency in respect of which a notification has been issued under Section 30, read with Section 56 of the Representation of the People Act, 1951; or (ii)the assets seized or requisitioned are connected in any manner to the ongoing election process in an assembly or parliamentary constituency ; and (iii)no evidence is available or investigation is required for any assessment year other than the assessment year relevant to the previous year in which search is conducted or requisition is made. 14. It is further submitted that in view of second limb of the CBDT circular, only if the money seized or requisitioned are connected in any manner to the ongoing election, the Investigating Officer may certify to that effect. 15. It is submitted that the second limb of the CBDT Circular is against the intention of the parliament and contrary to Rule 112 F. 16. On behalf of the respondent, ....
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....r six assessment years immediately preceding the assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made, shall be the cases- (i) Where, as a result of a search under Sub-Section(1) of Section 132 of the Act or a requisition made under Section 132A of the Act, a person is found to be in possession of any money, bullion, jewellery or other valuable articles or things, whether or not he is the actual owner of such money, bullion, jewellery etc; and (ii) Where, such search is conducted or such requisition is made in the territorial area of an assembly or Parliamentary constituency in respect of which a notification has been issued under Section 30 read with Section 56 of the Representation of the People Act, 1951 ( 43 of 1951) of where the assets so seized or requisitioned are connected in any manner to the ongoing election in an assembly or Parliamentary constituency. Provided that this rule shall not be applicable to cases where such search under section 132 or such requisition under section 132A has taken place after the hours of poll so notified: Provided further that this rule shall not b....
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....unavalur has given me Self cheque of Rs.19,74,500/- bearing the cheque number 000351 of M/s.St.Antony Educational Social Society in the morning signed by Prakashmull Chorida, Chairman of the above mentioned Society. Along with the self cheque, he has given 25 savings Bank accounts . A/c bearer cheques belonging to 25 individuals and a paper containing the names of 25 staff members and their account numbers and their respective net salary details. On clearing the self cheque of Rs.19,74,500/- (debiting the amount from St.Anthony Educational Social Society No.17640400000093) and credited the amount in the respective accounts mentioned in the list. On clearing 25 A/c bearer cheques, I have withdrawn cash of Rs.19,74,500/- from the list of savings accounts as mentioned in list above and carrying this amount to the Chairman's Shri.Prakashmull Chordia House, Nellikppam. 24. In his answer to Q.No.3, the said Bank Officer has stated that he was working with the aforesaid Bank from 2nd January 2021 after transfer from Pondicherry Branch. 25. In his reply, Q.No.8, Sri.R.Unnikrishnan, the Joint Manager of Bank of Baroda has given a statement to the effect that the cash was carried to ....
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....NN/SRN/SAESS/LS-3, which was received from the bank, that salary was already credited on 02.03.2021 to tune 22,71,980/- and also from statements recorded from Mr.Unnikrishnan that salary was credited and followed by withdrawal of cash from 60 individual bank accounts of employees. A.16: Yes sir. I accept that salary was already credited and followed by withdrawal from the individual savings account as stated. Q.17 : So from statements recorded from the Mr.Unnikrishnan, Mr.Saravanan as well bank statements, its clearly that salary are credited from trust into individuals and later by receiving self bearer cheque from employees, your are withdrawing cash from individual accounts. Q.18: Can you explain why amount to tune of Rs.19,74,500/- which was withdrawn from individual accounts of employees should not be treated as inflation of expenses in books of trust and siphon of the money for personal expenditure. And also why it should not treated as unaccounted income and can be seized? A.18 : I accept that these are cash withdrawn from individual salary was to meet out some of personal as well college expenses. 30. It appears that the petitioners have also challenged the same or....