Case Law Details
Mectec Vs Director of Income Tax Investigation (Telangana High Court)
Telangana High Court held that the action of the respondents in conducting panchanama dt.28.08.2019 and seizing cash of Rs.5.00 crores from Vipul Kumar Patel, employee of the petitioner in W.P.No.23023 of 2019, and retaining it till date, is illegal and ultra vires the provisions of the Income Tax Act, 1961 and also violative of Art.14 and 300-A of the Constitution of India ; the respondents are directed to forbear from conducting any further enquiry pursuant to the said panchanama under the said Act; and they shall refund within 4 weeks from date of receipt of copy of this order the said cash of Rs.5.00 crores to the petitioner in W.P.No.23023 of 2019 with interest at 12% p.a. from 28.08.2019 till date of payment to the said petitioner. The respondents shall also pay costs of Rs.20,000/- to the petitioner in W.P.No.23023 of 2019.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
The petitioner in W.P.No.23023 of 2019 ( for short ‘the petitioner’) is a proprietary concern carrying on business of purchase of agricultural lands and agricultural products throughout the country and claims that it has 46 branches at different places all over the country having employee strength of about 300. It also deals as a wholesale trader of agricultural products, vegetables, fruits, and post-harvest crop activities.
2. The petitioner in W.P.No.29297 of 2019 is Vipul Kumar Mafatlal Patel and he is alleged to be an employee of the petitioner in W.P.No.23023 of 2019 ( henceforth referred to as ‘Vipul Kumar Patel’).
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