The Calcutta High Court yesterday directed the Income Tax Department (IT Department) that refund, if any, of money seized in a raid should be made in valid/ new currency..The order was passed by Justice Joymalya Bagchi in an application moved by the assessee for modification of an earlier order passed in 2015..Advocates Raj Dip Ray, Mousomee Shome and Sandip Ray appeared for the assessee..The case began in 2012 when the police raided the residence of the accused/ assessee and found more than Rs. 2 crore cash lying at his home. The cash, which was seized, was in the custody of the police when the IT Department moved an application before the Additional Chief Judicial Magistrate (ACJM) to hand over the same to the IT department..The ACJM ordered that the money be handed over to the IT department subject to the submission of a bond of the equivalent amount to be executed by the Assistant Director of the IT Department..This was challenged by the IT Department in the High Court. The High Court disposed of the case on October 6, 2015 by directing the IT Department to complete the assessment in accordance with law. It also directed that the seized currency will not be altered and shall be made available for the purpose of trial and after completion of assessment, refundable money, if any, shall be returned to the assessee in accordance with law..A year later, demonetisation of Rs. 500 and 1000 notes happened forcing the assessee to move the High Court for modification of its earlier order..The Court allowed the assessee’s plea and ordered that seized currency will be videographed by the IT Department and will be produced as and when required by the trial court..Importantly, it directed that the IT Department after completing the assessment will refund money, if any, in valid/ new currency to the assessee.
The Calcutta High Court yesterday directed the Income Tax Department (IT Department) that refund, if any, of money seized in a raid should be made in valid/ new currency..The order was passed by Justice Joymalya Bagchi in an application moved by the assessee for modification of an earlier order passed in 2015..Advocates Raj Dip Ray, Mousomee Shome and Sandip Ray appeared for the assessee..The case began in 2012 when the police raided the residence of the accused/ assessee and found more than Rs. 2 crore cash lying at his home. The cash, which was seized, was in the custody of the police when the IT Department moved an application before the Additional Chief Judicial Magistrate (ACJM) to hand over the same to the IT department..The ACJM ordered that the money be handed over to the IT department subject to the submission of a bond of the equivalent amount to be executed by the Assistant Director of the IT Department..This was challenged by the IT Department in the High Court. The High Court disposed of the case on October 6, 2015 by directing the IT Department to complete the assessment in accordance with law. It also directed that the seized currency will not be altered and shall be made available for the purpose of trial and after completion of assessment, refundable money, if any, shall be returned to the assessee in accordance with law..A year later, demonetisation of Rs. 500 and 1000 notes happened forcing the assessee to move the High Court for modification of its earlier order..The Court allowed the assessee’s plea and ordered that seized currency will be videographed by the IT Department and will be produced as and when required by the trial court..Importantly, it directed that the IT Department after completing the assessment will refund money, if any, in valid/ new currency to the assessee.
