| Case ID |
0c6239e6-6dc7-417e-bc2c-ebf313b7e405 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Supreme Court upheld the High Court's ruling that the Income-tax Department was justified in seizing amounts intended for the purchase of Special Bearer Bonds under section 132(1) of the Income-tax Act, 1961. The Court emphasized that the immunity conferred by the Special Bearer Bonds Act is limited and does not protect the source of funds discovered by the department during lawful searches. The ruling reiterated that the Special Bearer Bonds Scheme operates independently of the Income-tax Act's enforcement mechanisms. Consequently, the appeal was dismissed, affirming the High Court's decision. |
| Summary |
In the case of Afzalunnissa Begum v. Union of India, the Supreme Court of India addressed the legality of the Income-tax Department's seizure of funds intended for the purchase of Special Bearer Bonds. The Court concluded that the department acted within its rights under section 132(1) of the Income-tax Act, 1961, confirming that the immunity provided by the Special Bearer Bonds Act does not extend to seized funds. This decision underscored the independence of the Special Bearer Bonds Scheme from the Income-tax Act, clarifying that the immunity only applies post-investment. The judgment serves as a significant reference for future cases involving tax law and the handling of seized assets, establishing important precedents regarding the scope of legal protections under specific financial schemes. |
| Court |
Supreme Court of India
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| Entities Involved |
Not available
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| Judges |
V. Ramaswami,
Yogeshwar Dayal
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| Lawyers |
Badar Durrez Ahmed,
Parijat Sinha,
Ms. Sunanda Roy,
Santosh Hegde,
A. Subba Rao,
A.D.N. Rao,
Ms. Nirmala Bhaskar,
Dr. S. Narayanan,
Manoj Arora,
Ms. A. Subhashini
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| Petitioners |
Afzalunnissa Begum
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| Respondents |
Union of India
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| Citations |
1992 SLD 1546 = (1992) 195 ITR 612
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| Other Citations |
R.K. Garg v. Union of India [1982] 133 ITR 239 (SC),
Tej Bahadur Dube v. CIT[1985] 152 ITR 476 (AP)
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| Laws Involved |
Income-tax Act, 1961,
Special Bearer Bonds (Immunities and Exemptions) Act, 1981
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| Sections |
132(1)
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