DR.K.M.ASHIK V. THE DEPUTY COMMISSIONER OF INCOME TAX

WP(C)/14904/2014

AI Insights

The case involves Dr. K.M. Ashik, the petitioner, whose residence was searched under Section 132 of the Income Tax Act, leading to the seizure of documents. The petitioner sought the return of two specific documents (title deeds) necessary for obtaining a construction permit from the Local Self Government Institution. The Income Tax Department retained these documents under Section 132(8) and Section 132B of the Act, claiming rights over the assets covered by the documents for recovering dues from the petitioner. The court's decision focused on the procedural aspect of allowing the petitioner to approach the correct authority (Commissioner of Income Tax, Central, Ernakulam) for the release of the documents, contingent upon providing sufficient security.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 771317 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 23-06-2014
• Assessment Year: misc
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: JOSE JOSEPH
• Assessee Lawyers: M KRISHNAKUMAR
• Keywords: Income Tax; Search and seizure; Title deeds; Document retention; Local self government permit
• Section: 132; 132B

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN MONDAY, THE 23RD DAY OF JUNE 2014/2ND ASHADHA, 1936 WP(C).No. 14904 of 2014 (K) ---------------------------- PETITIONER : -------------------------- DR.K.M.ASHIK, AGED 49 YEARS, S/O. DR. MOIDU, MOIDU'S MEDICARE PRIVATE LTD., NATIONAL HOSPITAL, I.G.ROAD, KOZHIKODE-673 001. BY ADV. SRI.M.KRISHNAKUMAR RESPONDENT(S): ---------------------------- 1. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2, KOZHIKODE-673 001. 2. THE COMMISSIONER OF INCOME TAX (A)-1, SANJUAN TOWER, BEHIND C.R.BUILDING, I.S.PRESS ROAD, KOCHI-682 018. 3. THE JOINT DIRECTOR OF INCOME TAX (INVESTIGATION), OFFICE OF THE JOINT COMMISSIONER OF INCOME TAX, KOCHI-682 018. *ADDL.R4 IMPLEADED *R4: THE COMMISSIONER OF INCOME TAX, (CENTRAL), ERNAKULAM. * IMPLEADED SUO MOTU AS ADDITIONAL 4TH RESPONDENT AS PER JUDGMENT DATED 23/6/2014. BY SRI.JOSE JOSEPH, SC, FOR INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23-06-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C).No. 14904 of 2014 (K) ----------------------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXHIBIT P1- TRUE COPY OF THE ASSESSMENT ORDER DATED 8-5-2014 FOR 2007-2008. EXHIBIT P2- TRUE COPY OF THE ASSESSMENT ORDER DATED 8-5-2014 FOR 2008-2009. EXHIBIT P3- TRUE COPY OF THE ASSESSMENT ORDER DATED 8-5-2014 FOR 2009-2010. EXHIBIT P4- TRUE COPY OF THE ASSESSMENT ORDER DATED 8-5-2014 FOR 2010-2011. EXHIBIT P5- TRUE COPY OF THE ASSESSMENT ORDER DATED 8-5-2014 FOR 2011-2012. EXHIBIT P6- TRUE COPY OF THE ASSESSMENT ORDER DATED 8-5-2014 FOR 2012-2013. EXHIBIT P7- TRUE COPY OF THE APPEAL DATED 27-5-2014. EXHIBIT P8- TRUE COPY OF THE APPLICATION DATED 25-3-2014. EXHIBIT P9- TRUE COPY OF THE APPLICATION DATED 22-5-2013. EXHIBIT P10- TRUE COPY OF THE APPLICATION DATED 19-12-2013. EXHIBIT P11- TRUE COPY OF THE APPLICATION DATED 2-1-2014 EXHIBIT P12- TRUE COPY OF THE NOTICE DATED 13-1-2014. RESPONDENT(S)' EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts K.VINOD CHANDRAN, J - - - - - - - - - - - - - - - - - - - - W.P.(C).No. 14904 of 2014 - - - - - - - - - - - - - - - - Dated 23rd June, 2014 - - - - - - - - - - - - - - - - - - - - - - - - JUDGMENT Petitioner is an assessee whose residence was searched under Section 132 of the Income Tax Act, (for short 'the Act') and certain documents were seized from his possession. The petitioner in the present proceedings, is concerned with Exts.P8 to P11 applications which sought for return of two documents being document Nos.1143 and 1144 of 2011 of SRO of Kozhikode., one of which is stated to be in the name of the petitioner's wife. 2. The learned Standing Counsel appearing for the Department, however contends that as per sub-section (8) of Section 132 of the Act, the Department is entitled to retain the document seized and under Section 132B, the Department is also entitled to recover the amounts due from the assessee from the assets which are covered by the aforesaid documents seized on search. The contention of the petitioner however, is that he is WP(C).14904/14 2 unable to get a permit for construction of a residential building in the said properties from the Local Self Government Institution for want of original title deeds. Though certified copies were issued, that did not enable the petitioner to get the permit from the Local Self Government Institution. It is in such circumstance, that the applications have been filed undertaking to provide sufficient security for the value of the properties covered by the aforesaid documents or for the dues pending against the petitioner in the block assessments conducted by the Income Tax Department. 3. Exts.P8 to P11 applications necessarily have to be considered. The applications, according to the learned Standing Counsel, are to be considered by the Commissioner of Income Tax (Central), Ernakulam who is the appropriate authority to consider such applications relating to search and seizure conducted under the Act, The Commissioner of Income Tax (Central), Ernakulam, is impleaded suo motu as the additional 4th WP(C).14904/14 3 respondent in the writ petition and the petitioner shall file fresh applications before the additional 4th respondent impleaded, who shall decide upon the issue of releasing the aforesaid documents, if sufficient security is offered to the satisfaction of the Commissioner. Needful in the matter shall be done within a period of one month from the date of receipt of a copy of this judgment. Writ petition disposed of. Sd/- K.VINOD CHANDRAN, Judge Mrcs //True Copy// "