Gautam Thadani Vs Director Income Tax (Investigation) And Anr. (Delhi High Court)
Delhi High Court held that income tax authorities cannot retain seized cash once time period for framing an assessment under section 153A of the Income Tax Act has expired and there is no outstanding demand. Accordingly, petition disposed of.
Facts- The petitioner has filed the present petition under Article 226 of the Constitution of India, inter alia, praying that directions be issued to respondent no.2/Superintendent of Police, Central Bureau of Investigation (CBI) to handover an amount of ₹98,00,000/- which was seized from the petitioner on 20.10.2012. The petitioner also impugns an order dated 05.09.2016 passed u/s. 132A of the Income Tax Act, 1961 and further proceedings pursuant to the impugned requisition. Additionally, the petitioner also impugns a notice dated 08.10.2018 issued u/s. 153A of the Act and notice dated 05.11.2018 issued under Section 142(1) of the Act in respect of the assessment years (AY) 2011-12 to 2016-17.
Conclusion- Held that in terms of Section 153B(1)(a) of the Act, the assessment under Section 153A of the Act is required to be completed within a period of twenty-one months from the end of the financial year in which the requisition under Section 132A of the Act was executed. In the present case, the warrant under Section 132A(1)(c) of the Act was executed on 15.12.2016, thus, the Income Tax Authorities are required to complete the assessment within the time period stipulated under Section 153B(1)(a) of the Act which was required to be reckoned from 15.12.2016. In the present case, it is contended on behalf of the petitioner that the time period for framing an assessment under Section 153A of the Act has expired. Undisputedly, if the time period for framing an assessment under Section 153A of the Act has expired, and there is no outstanding demand, the Income Tax Authorities would have no justification in retaining the seized cash.
