Deputy Director of Income Tax Vs CMS Info Systems Ltd. (Karnataka High Court)
Karnataka HC: Review Petition by Revenue Against Release of Seized ₹2 Crore Dismissed – Matter Remains Remitted for Fresh Consideration u/s 132B
The Karnataka High Court (Kalaburagi Bench) dismissed a review petition filed by the Revenue challenging its earlier order dated 14.11.2024 in W.P. No.200997/2023. The earlier order had set aside the rejection of assessee’s application u/s 132B seeking release of seized cash of ₹2 crore & remitted the matter back to the Deputy Director of Income Tax for fresh consideration.
In the original writ petition, CMS Info Systems Ltd. had sought release of seized cash of ₹2 crore along with other reliefs. The Court, vide order dated 14.11.2024, held that the rejection order dated 21.12.2022 passed by the Deputy Director was a non-speaking order as it ignored the documents & submissions placed by the assessee. Accordingly, the Court set aside the rejection & remitted the matter to the Department for reconsideration, granting liberty to the assessee to produce further documents, & directed the Department to pass a fresh order after giving reasonable opportunity of hearing.
Aggrieved, the Revenue filed the present review petition, contending that events during pendency of the writ petition had not been considered & that the order caused prejudice.
