Shivaganga Multipurpose Co-operative Society V. The Director of Income Tax (Inv), Bengaluru and The Assistant Director of Income Tax (Inv), Laxmi Complex, APMC Road, Sadashivnagar, Belagavi and The Commissioner of Income Tax (Central Circle), C.R. Building, Infantry Road, Bengaluru and Assistant Commissioner of Income Tax (Central Circle), Saraf Compound, Khanapur Road, Tilakwadi, Belagavi and Income Tax Officer (IAP)-12, Laxmi Complex, APMC Road, Sadashivnagar, Belagavi and Suresh Motilal Chindak

WP/76526/2013

AI Insights

The case involves Shivaganga Multipurpose Co-operative Society, represented by its chairman, Smt. Jyoti Ramesh Chindak, filing a writ petition against various income tax authorities and an individual, Suresh Motilal Chindak, seeking the release of seized F.D receipts and cash totaling Rs. 34,00,000. The petition was filed under Articles 226 and 227 of the Constitution of India, aiming for a writ of mandamus to direct the income tax authorities to release the seized assets. The court heard arguments from both sides and considered the submission that a bank guarantee would be provided by the sixth respondent to secure the release of the funds.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 812538 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 22-08-2024
• Assessment Year: misc
• Laws Referred To: Articles 226 and 227 of the Constitution of India
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: Y V RAVIRAJ; M THIRUMALESH; SHAKTIPRASAD
• Assessee Lawyers: SANGRAM KULKARNI
• Keywords: Cash release; Income Tax; Seizure; Writ of Mandamus; F.D receipts

Judgement Text

" - 1 - NC: 2024:KHC-D:11989 WP No. 76526 of 2013 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 22ND DAY OF AUGUST, 2024 BEFORE THE HON'BLE MS. JUSTICE JYOTI MULIMANI WRIT PETITION NO. 76526 OF 2013 (T-IT) BETWEEN: SHIVAGANGA MULTIPURPOSE CO-OPERATIVE SOCIETY, KACHERI GALLI, SHAHAPUR, BELAGAVI, BY ITS CHAIRMAN, SMT. JYOTI RAMESH CHINDAK. …PETITIONER (BY SRI. SANGRAM.S.KULKARNI., ADVOCATE) AND: 1. THE DIRECTOR OF INCOME TAX (INV), BENGALURU. 2. THE ASSISTANT DIRECTOR OF INCOME TAX (INV), LAXMI COMPLEX, APMC ROAD, SADASHIVNAGAR, BELAGAVI. 3. THE COMMISSIONER OF INCOME TAX (CENTRAL CIRCLE), C.R. BUILDING, INFANTRY ROAD, BENGALURU. 4. ASSISTANT COMMISSIONER OF INCOME TAX (CENTRAL CIRCLE), SARAF COMPOUND, KHANAPUR ROAD, TILAKWADI, BELAGAVI. 5. INCOME TAX OFFICER (IAP)-12, LAXMI COMPLEX, APMC ROAD, SADASHIVANAGAR, BELAGAVI. Digitally signed by THEJASKUMAR N Location: HIGH COURT OF KARNATAKA - 2 - NC: 2024:KHC-D:11989 WP No. 76526 of 2013 6. SURESH MOTILAL CHINDAK, AGE: 49 YEARS, R/O: SHIVAGANGA BUILDING, JOSHI MALA, KHASBAG, BELAGAVI. …RESPONDENTS (BY SRI. Y.V.RAVIRAJ., AND SRI. M.THIRUMALESH., ADVOCATES FOR R1-5; SRI. SHAKTIPRASAD., ADVOCATE FOR SRI. JAGADISH PATIL., ADVOCATE FOR R6) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, SEEKING CERTAIN RELIEFS. THIS WRIT PETITION IS LISTED FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, AN ORDER IS MADE AS UNDER: ORAL ORDER Sri.Sangram S.Kulkarni., learned counsel for the petitioner, Sri.M.Thirumalesh., learned counsel for respondents 1 to 5 and Sri.Shaktiprasad., learned counsel on behalf of Sri.Jagadish Patil., for respondent No.6 have appeared in person. Sri.Y.V.Raviraj., learned counsel for respondents 1 to 5 has appeared through video conferencing. 2. The captioned Writ Petition is filed seeking a Writ of Mandamus directing respondents 1 to 5 to release the F.D - 3 - NC: 2024:KHC-D:11989 WP No. 76526 of 2013 receipts and cash of Rupees Thirty-Four Lakh belonging to the petitioner Society seized by respondents 2 and 3. 3. Learned counsel for the respective parties urged several contentions. Heard the contentions and perused the Writ papers with utmost care. 4. Counsel Sri.Sangram S.Kulkarni., submits that a mandamus may be ordered directing respondents 1 to 5 to release the F.D receipts and cash to the petitioner society. Learned counsel for respondent No.6 submits that respondent No.6 will furnish a bank guarantee to the satisfaction of the authority within two weeks. Counsel Sri.Y.V.Raviraj., submits that once the authority receives the bank guarantee from the sixth respondent, respondents 1 to 5 would take appropriate steps to release the F.D receipts and cash to the petitioner. The oral submission made by learned counsel for the respective parties is placed on record. 5. Taking note of the submission made by learned counsel for the respective parties, the sixth respondent is - 4 - NC: 2024:KHC-D:11989 WP No. 76526 of 2013 directed to furnish bank guarantee to the satisfaction of the authority within two weeks from the date of receipt of the certified copy of this order. Upon the satisfaction of bank guarantee, respondents 1 to 5 are directed to take necessary steps to release the F.D receipts and cash of Rs.34,00,000/- (Rupees Thirty Four Lakh only) to the petitioner within four weeks thereon, in accordance with the law. 6. Accordingly, the Writ Petition is disposed of. Sd/- (JYOTI MULIMANI) JUDGE TKN List No.: 3 Sl No.: 11 "