Ashutosh Sharma Vs ITO (Delhi High Court)
In the case of Ashutosh Sharma vs ITO, the Delhi High Court addressed a petition under Article 227 of the Constitution, challenging the trial court’s refusal to release a Fixed Deposit Receipt (FDR) of Rs. 25 lakh. The FDR was originally deposited as a condition for rescinding a Look Out Circular (LOC) issued by the Income Tax Department against the petitioner. The LOC had been rescinded in 2019, allowing the petitioner to travel abroad with specific conditions, including the deposit of the FDR. Despite the LOC being rescinded and no fresh LOC issued, the trial court had denied the release of the FDR, claiming it was not solely tied to the petitioner’s travel abroad. The petitioner argued that since there was no existing LOC, the FDR should be released. The Income Tax Department confirmed that no new LOC had been issued. The Delhi High Court found that the FDR was indeed linked to the travel conditions and, in the absence of a fresh LOC, ordered the trial court to release the FDR to the petitioner. The petition was thus allowed, and the case was disposed of.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
