ACIT Vs State Through Jt. Commissioner of Police (Delhi High Court)
Delhi High Court held that seized amount is prima facie proceeds of crime and not lawful income hence to treat such amounts as taxable income recoverable by the Income Tax Department, prior to the conclusion of the PMLA trial or adjudication, would be erroneous. Accordingly, petition dismissed.
Facts- A search and seizure operation u/s. 132 of the IT Act, 1961, was carried out by the Investigation Wing of Income Tax Department on 18.01.2011, at the residential and office premises of the Respondent Nos. 3 to 6 and the Firm M/s Stockguru India in which number of incriminating documents, details of all Bank Account/s deposit/s with all kind properties, articles, etc. in their names including the cash of Rs.34,69,00,000/-, were seized by the Investigation Wing of the Income Tax Department, u/s. 132(3) of IT Act. A Seizure Order was also served upon their HDFC Bank, Dwarka Branch, New Delhi on 18.01.2011 qua their Bank Accounts with the direction not to deal with them, without prior approval.
The FIR No. 84/2011 under Sections 406/409/419/420/467/468/471/120-B/34 IPC and Sections 3/4/5 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 dated 07.04.2011. and FIR No. 152/2011 under 406/409/419/420/467/468/471/120-B/34 IPC and Sections 3/4/5 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 dated 29.06.2011, were registered on the complaint of Sh. Sunil Kumar who allegedly paid Rs.60 lac on 30.12.2010 and Rs. l Crore on 31.01.2011 by cheques to Respondent No.3 for investment of which he and other investors were cheated.
