INCOME TAX ACT, 1961

Section 132

Search and seizure under section 132 - Release of cash seized in search - Jurisdiction of AO -

On a reliable information that gold rates were likely to be increased in few days, assessee along with his brother's son and his Nephew, boarded a bus for purchase of gold and as the day was a bank holiday, cash which was sought to be taken could not be deposited in the bank. On search, Police intercepted and seized the cash and a case came to be registered under section 102 of Cr. P.C. Summons came to be issued under section 131(1A) asking assessee to personally appear along with necessary documents to prove their claim if any. Thereafter, Sub-Inspector of Police issued summons to assessee to appear before him to give evidence. Assessee submitted along with an affidavit expressing his inability to appear. Assessee handed over cash to revenue under panchanama, along with an inventory of the cash seized. It was urged that nature of business of assessee was trading in bullion of gold and silver and the cash transactions and cash seized was out of the said business transactions Held: AO is the final authority to release the amount, subject to the conditions referred to therein. Proceedings before the said authority were pending adjudication. Further, section 132B relates to procedure for applications and release of assets seized under section 132 or requisitioned under section 132A and the matter was pending before the concerned AO. Having regard to the guidelines issued by CBDT and section 132B, AO should take into account the advance tax paid, the documents filed along with the returns and pass appropriate orders in connection with assessment at the earliest in accordance with law and release the cash to the extent permissible with interest.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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