Case Law Details
In respect of Cash of Rs. 30 Lakh seized by Punjab Police during demonetization from appellant while travelling in a cab from Delhi appellant submitted that only persons who are being prosecuted for any offence punishable under Chapter IX or Chapter XVII of the Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention), Act, 1967, the Prevention of Corruption Act, 1988, the Prohibition of Benami Property Transactions Act, 1988 and the Prevention of Money Laundering Act, 2002 are not entitled to avail the benefit of PMGKY deposit scheme.
As petitioner does not come within any of the mentioned categories of persons whose declaration is not eligible for the Scheme, as contemplated by para 8 of the explanatory notes in (circular no.43 of 2016 dated 27.12.2016) and therefore, he would be entitled to avail the remedy as no prosecution for any offence punishable under aforementioned provisions of the Act, has been instituted against him till date, much less, no charge sheet or complaint has been filed for prosecution in any Court of law.
Held by High Court
In case, the petitioner submits any application to the Income Tax Department, the authorities can look into matter for the purpose of declaration of undisclosed income by availing the remedy under the PMGKY Scheme. They shall consider the same and pass an appropriate order thereon as it enables the Government to earn straightway 50% of the amount, 25% for depositing of the bonds and 25% to be deposited in the account which shall be released only after 04 years. While releasing the amount after 04 years, the Income Tax Authorities can release the same only when there is no outstanding amount due towards them from the petitioner.
There has been a survey at the business premises of an asessee on 27.12.2016 and it was converted into search on 28.12.2016. Cash amounting to 70 lacs in Old 1000 and 500 notes (SBN) was found and seized by ITD. Can the assessee opt for PMGKY in respect of Rs.70 lacs seized ? If yes, then how shall the assessee deposit tax and make deposit in PMGKY as his entire cash was seized by ITD and he does not have any more cash or bank balance with him to pay tax or to make deposit. Kindly advise. The assessee is neither chargesheeted nor convicted under any other law and no other proceedings are pending against him. Thanks