HC Directed Petitioner to Approach Income Tax Dept. Since Cash Seized Was Handed Over to Them as Per Their Requisition

Case Details: Centre C Edtech (P.) Ltd. v. Intelligence Officer - [2024] 162 taxmann.com 521 (Kerala)

Judiciary and Counsel Details

• • Dinesh Kumar Singh, J.
  • Anil D. Nair, Telma Raju & Aditya Unnikrishnan, Advs. for the Petitioner.
  • Ms Reshmita Ramachandran & Smt. Jasmine M.M., GPs. for the Respondent.

Facts of the Case

The petitioner was engaged in the business of providing online education services. The department issued a show cause notice (SCN) and directed to submit reply within one month. However, no reply had been filed by petitioner and the department issued seizure memo, directing seizure of cash amount of Rs.39,70,760/- from petitioner. It filed writ petition against the action of department and requested to release the seized cash.

High Court Held

The Honorable High Court noted that the cash amount seized from petitioners was handed over to Income Tax Department in pursuance to requisition sent by Income Tax Department. Therefore, the Court observed that the remedy for release of cash lied before Income Tax Department and the petitioner was free to approach Income Tax Department.

The Court also noted that the petitioner was granted time to file reply to notice issued under Section 74 but the petitioner failed to file reply to the SCN issued by the department which led to passing of seizure memo. Therefore, the Court granted one week time to file reply to aforesaid notice and the adjudication proceedings would be undertaken in accordance with law.