Cash was seized from petitioner’s employee by police and handed over to the income-tax department on August 27, 2019. Search warrant dt. August 28, 2019, that too not mentioning the place to be searched, was a fabricated document. On writ the Court held that intimation by the Police to the income-tax department on August 27, 2019 would not confer jurisdiction on the income-tax department to detain and withhold cash, that too by issuance of an invalid search warrant under S. 132. Income-tax department is directed to refund the cash to the Assessee along with interest. Followed DGIT (Inv) v. Spacewood Furnishers Pvt. Ltd. (2015) 374 ITR 595 (SC), CIT v. Vindya Metal Corporation (1997) 224 ITR 614 (SC)
Mectec v. DIT (Inv.) (2021) 433 ITR 203 / 198 DTR 157 / 319 CTR 95 / 278 Taxman 214 (Telangana)(HC) Vipul Kumar Patel v. UOI (2021) 433 ITR 203 / 319 CTR 95 / 198 DTR 157 / 278 Taxman 214 (Telegana) (HC)
S. 132 : Search and seizure-Cash seized by police-Handed over to Income-Tax Authorities-Issue of warrant of authorization and retention. of cash-Held to be invalid. [S. 132A, 132B, Art. 226, 300A]