| Case ID |
ffcaffc4-8b95-43dc-aee9-c499e2689945 |
| Body |
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| Case Number |
WRIT PETITION No. 9659 OF 2003 |
| Decision Date |
Sep 12, 2005 |
| Hearing Date |
|
| Decision |
The writ petition was successful, and the impugned authorization issued by the Chief Commissioner was quashed. The court directed the revenue to return the seized amount of Rs. 30,00,000 to the petitioner immediately. The court found that the petitioner had provided adequate documentation to explain the source of the seized money, which was duly accounted for in their books of account. The invocation of section 132A by the revenue was deemed unjustified as there was no reasonable basis for such action. No costs were awarded. |
| Summary |
This case involves a writ petition filed by Biaora Constructions P. Ltd. against the Income-tax Department regarding the seizure of Rs. 30,00,000 by the police, which was later requisitioned by the tax authorities under section 132A of the Income-tax Act, 1961. The petitioner argued that the seized amount was lawfully withdrawn from their bank account and was duly accounted for in their books. The Madhya Pradesh High Court, presided over by Judge A.M. Sapre, examined the evidence, including bank certificates and account books, and found that the revenue had no valid grounds to invoke section 132A. The court quashed the authorization order and directed the return of the seized amount to the petitioner. The judgment references key case laws, including CIT v. Vindhya Metal Corpn., emphasizing the need for valid grounds and information before invoking search and seizure provisions. This case highlights the importance of due process and the protection of taxpayer rights against unwarranted seizures by tax authorities. Keywords: income tax, section 132A, search and seizure, taxpayer rights, Madhya Pradesh High Court, Biaora Constructions. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Income-tax Department,
Bank of India,
Biaora Constructions P. Ltd.
|
| Judges |
A.M. Sapre, J.
|
| Lawyers |
G.M. Chafekar,
Sarda,
A.P. Patankar
|
| Petitioners |
Biaora Constructions P. Ltd.
|
| Respondents |
|
| Citations |
2006 SLD 3401,
(2006) 281 ITR 247
|
| Other Citations |
CIT v. Vindhya Metal Corpn. [1997] 224 ITR 614,
Union of India v. Ajit Jain [2003] 260 ITR 80,
Ajit Jain v. Union of India [2000] 242 ITR 302,
Vindhya Metal Corpn. v. CIT [1985] 156 ITR 233
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
132A,
132,
131
|