The Kerala High Court has ruled that the income tax department is not authorized to retain the title deeds seized by them under Section 132 of the Income Tax Act on the ground that a Special Leave Petition filed by the Assessee against the assessment order is pending before the Supreme Court.
The Single Bench consisting of Justice Bechu Kurian Thomas held that since the Income Tax Act confers the tax authorities the power to retain seized documents beyond the assessment order only till proceedings under the Act are completed, therefore documents seized by the department cannot be retained by them on the ground of pendency of Special Leave Petition (SLP) since an SLP filed under Article 136 of the Constitution of India cannot be regarded as a proceeding under the Income Tax Act.
During the search operations conducted by the income tax officers the title deeds of the Assessee Udaya Sounds were seized by the officers. Consequent to the search and seizure, block assessment proceedings were launched against the Assessee.
The assessment The Assessee had filed an appeal against the quantum of undisclosed income assessed in its hands.
The Kerala High Court had refixed the undisclosed income of the Assessee against which the Assessee had filed a Special Leave Petition before the Supreme Court which is still pending.
Business Gang 