Income Tax Authorities Can Retain Seized Currency for Inquiry, Court Rejects Automatic Return Before Trial Ends.

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....The High Court held that the Income Tax authorities have the power to seek interim custody of currency notes seized and produced before the jurisdictional magistrate or reported to the magistrate u/s 102 of the Criminal Procedure Code. When the Income Tax Act empowers the competent authority to requisition assets of assessees and adjust them towards liabilities, if there is reason to believe that the asset represents undisclosed income or property, the competent authority is best suited to hold the seized currency notes until the inquiry or trial concludes. Section 132A allows requisitioning books of account, and the competent authority can seek interim custody of seized assets, even if unable to issue a requisition u/s 132A when the asset .........