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| The Tax Publishers2019 TaxPub(DT) 7566 (Mad-HC) INCOME TAX ACT, 1961
Section 153A
Revenue was not justified in relying upon section 132B to retain the asset, when admittedly, as on date there are no arrears of tax due from assessee and that the assessment was not yet completed and the liability was arrived. Accordingly, this writ petition was allowed and Revenue was directed to return the jewellery, which were seized under Panchanama.
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Search and seizure - Assessment under section 153A - Release of jewellery as seized during course of search and recorded in Panchanama - Validity of
Assessee filed this petition for a Mandamus directing Revenue to forthwith release the Jewellery which were seized during the course of search and recorded in Panchanama. Search operation under section 132A was conducted in premises of assessee and Gold, diamond jewellery and ornaments were seized. Consequent to the search, assessments were made under section 153A read with section 143(3), making an addition based on seized jewellery. Held: Perusal of section 132B indicates that the same is applicable only in case where an amount of any existing liability is arrived by Revenue. Sub-section (i) of section 132B(1) also reads that such existing liability can be derived only on completion of assessment under section 153A. It was an admitted fact that assessment was not completed in respect of assessment year. Therefore, Revenue was not justified in relying upon section 132B to retain the asset, when admittedly, as on date there are no arrears of tax due from assessee and that assessment was not yet completed and liability was arrived. Accordingly, this writ petition was allowed and Revenue was directed to return the jewellery, which were seized under Panchanama.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
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