| Case ID |
7365ce45-fab7-4685-a434-bdfd80a0c962 |
| Body |
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| Case Number |
C.W. No. 992 OF 1973 |
| Decision Date |
Jan 16, 1974 |
| Hearing Date |
|
| Decision |
The Delhi High Court held that the mere taking over of the keys of the lockers and passing an order under section 132(3) did not amount to 'seizure' as defined under the Income-tax Act. The court concluded that the contents of the lockers were not seized since the authorized officer did not take possession of the contents but merely issued an order restraining the bank from allowing access to the lockers. Therefore, the petitioner's claim for release of the assets due to non-issuance of an order within the stipulated ninety days was denied. The court directed the authorities to decide within two weeks whether the contents of the lockers should be seized or not, emphasizing the need for compliance with legal procedures under section 132. |
| Summary |
In the case of Mrs. Kanwal Shamsher Singh v. Union of India, the Delhi High Court addressed the issue of 'seizure' under section 132 of the Income-tax Act, 1961, during a search operation conducted at the petitioner's residence. The court analyzed the actions taken by the authorized officer, who found keys to two lockers but did not take possession of their contents. The court emphasized that 'seizure' requires dispossession of the individual from whom the assets are taken, which did not occur in this instance. The petitioner argued that the failure to issue an order within ninety days post-seizure entitled her to the release of the assets. However, the court ruled that the actions taken were merely precautionary and did not constitute a legal seizure. The judgment highlights the legal interpretation of seizure and the importance of following statutory procedures in tax-related searches. This case serves as a significant reference for future cases involving search and seizure under the Income-tax Act, providing clarity on the definition and implications of seizure in tax law. |
| Court |
Delhi High Court
|
| Entities Involved |
Delhi Safe Deposit Company
|
| Judges |
S.N. Shankar,
H.L. Anand
|
| Lawyers |
V.M. Tarkunde,
K. Jayaram,
T.V.S. Narasimhachari,
B.N. Kirpal,
Jagdeep Kishore
|
| Petitioners |
Mrs. Kanwal Shamsher Singh
|
| Respondents |
Union of India
|
| Citations |
1974 SLD 543,
(1974) 95 ITR 80
|
| Other Citations |
CIT v. Jawahar Lal Rastogi [1970] 78 ITR 486 (SC),
Gian Chand v. State of Punjab AIR 1962 SC 496
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
132
|