Case Details: Kamlesh Shah vs. Union of India - [2025] 171 taxmann.com 419 (TELANGANA)
Judiciary and Counsel Details
- P. Sam Koshy & N.Tukaramji, JJ.
-
Vedula Chitralekha for the Petitioner.
-
J.V. PRASAD for the Respondent.
Facts of the Case
The petitioner claimed himself to be the proprietor of ‘ST’ which was engaged in the business of agricultural produce like vegetables, fruits, post-harvest activities and other agro-based produce since 1984. According to him, on 03.09.2020, he had come from Ahmedabad to Hyderabad bringing along with him cash of Rs. 3.75 crores.
He contended that cash was his business money, which was already reflected in his bank statement. During the search and seizure operation, the cash was seized by the authorities. Aggrieved by the order, the petitioner filed a writ petition before the High Court of Telangana, seeking the release of the cash.
High Court Held
The High Court held that the petitioner had raised his claim for the return of money with the Income-tax Department in October 2020, almost after a month from the date of the amount so seized. This raised several doubts regarding the petitioner’s credentials and his claim.
Further, no procedural irregularity was committed by the authorities concerned, and the requirement under section 132 had been met. Therefore, no strong case was made out by the petitioner calling for interference with the impugned action by the respondent.
List of Cases Referred to
- Kamleshbhai Rajnikant Shah v. Deputy DIT [2019] 110 taxmann.com 214/267 Taxman 159/[2020] 420 ITR 274 (Gujarat) (para 15)
- Amar Agarwal v. Director of I.T. (Investigation) [2005] 144 Taxman 762/276 ITR 182 (Madhya Pradesh) (para 15)
- Asstt. CIT v. P.N. Sanyal [2014] 45 taxmann.com 516/225 Taxman 193 (Allahabad) (para 23)
- Smt. Suman Singhai v. DIT (Investigation) [2012] 20 taxmann.com 835/[2011] 335 ITR 188 (Madhya Pradesh) (para 24).
The post HC Justified Retention of Cash Seized During Search as Assessee Raised His Claim for Return of Money After a Month appeared first on Taxmann Blog.