ACIT Vs Mohammed Salih (Kerala High Court)
Kerala High Court Held that money in Bank accounts is a property liable for provisional attachment under Section 281B of the Income Tax Act. Thus, writ petition is allowed.
Facts- On 12.04.2022, the police seized a huge amount of cash (₹1,56,00,000/-) from a car in which respondents 1 and 2 in the writ appeal were riding. The seized amount was produced before the Judicial First Class Magistrate’s Court.
On application by the Department u/s. 132A of the Act, the Court directed release of the amount to the Department. Respondents 1 and 2 herein and others challenged the said order before this Court. This Court as per order dated 21.12.2023, directed release of the cash to them on furnishing a bond for the amount. The amount was accordingly released.
Upon investigation and being satisfied that there was no explanation for the cash nor was it accounted, and after recording reason to believe that income chargeable to tax has escaped assessment, proceedings were initiated in relation to the same by the issuance of notice u/s. 148 of the Act.
Finding that the expected demand on assessment including penalty would be a substantial amount exceeding two crores, the payment of which the assessees would evade, the competent authority of the Department, ordered provisional attachment of the Bank accounts of the assessees as per orders of attachment un/s. 281B of the Act. The said orders were challenged in the writ petition. The writ petition was allowed, against which the Department is in appeal.
