Telangana HC Orders IT Dept to Pay INR 5 CR Seized Cash with Interest

The Telangana High Court said to the Income Tax Authority to return the cash of Rs. 5 crores along with 12% interest and deliver the employee to the applicant.

The applicant is the owner of the business in which he engages in buying the agricultural lands along with the agricultural products throughout the country and avails that it has 46 offices at various places all across the country with 300 employees. Indeed it also deals as a wholesale trader and trades on several products like vegetables, fruits, and indulges in post-harvest crop activities.

The applicant also states that it has a higher turnover and manages larger quantities of cash and that there is no information to the income tax department. As per that no hearings of reopening the assessment are due to the income tax department.

In the Telangana state, the applicant specified that it has business transactions and for some business objectives it committed a sum of Rs.5 Crores to its employee Vipul Kumar Patel.

The petitioner said that everything they had been carrying was impounded illegality by the police.

The applicant has stated that below section 132 the seizure of cash is not legal without taking valid authorization from Vipul Kumar Patel. In the applicant’s accounts, the balance sheet is mentioned with the sufficient quantity of cash in hand to which Rs 5 cr is made available through the applicant to its employee, thus the money needs to be given back to the applicant with the interest indeed for illegally alleging the petitioner a high cost must be imposed on the respondent.

The Coram consisting of Justice Ramachandra Rao and Justice T. Amarnath Goud declared that the action of the respondents for doing the panchnama and Seizing of Rs 5 cr from Vipul Kumar Patel, an employee of the petitioner, and holding it till date, is unlawful and ultra vires the procurement of the Income Tax Act, 1961 Get to know complete guide of TDS provisions under income tax act 1961 at here. Also, we include several topics as TDS returns, TDS due dates, penalty. Read more and also it violates the Article 14 and 300-A of the Constitution of India.

The court further instructed the respondents to refrain from doing any additional investigation following the panchanama and they must transfer money within 4 weeks from the receipt date of the xerox of this order the stated cash of Rs.5 cr to the applicant with 12% interest per annum w.e.f August 28, 2019, till the payment date to the applicant.