Cash was seized from Bhuraram by the police pursuant to the order dated February 9, 2011 passed by the Chief Judicial Magistrate. The seized cash was handed over to the Income-tax Department. The first statement of Bhuraram was recorded under section 132(4) of the Act, wherein he admitted that the cash amount belonged to him. Assessment proceedings in the case of B were initiated by notice under section 153A of the Act.  In the course of assessment proceedings Bhuraram  accepted  that the seized cash belonged to him being derived from the sale of silver.  The AO passed the order which was affirmed by the CIT(A). Penalty order was also passed which was affirmed by CIT(A) A writ petition was filed by the petitioner-firm claiming that Bhuraram  was its employee and the seized cash belonged to it and hence it should be released to it  dismissing the petition the Court held that  there was no challenge to the order of penalty and the seized cash being adjusted towards it. Hence there was no irregularity or illegality in the order passed by the Assessing Officer, treating the seized cash as “unaccounted income” in the hands of Bhuraram. The firm was not entitled to the release of the cash seized. (AY. 2010-11)