IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 5TH AUGUST 2010 / 14TH SRAVANA 1932 WP(C).No. 19146 of 2010(P) -------------------------- PETITIONER(S): --------------- CHACKO.V.JOSEPH,S/O.V.C.JOSEPH, RESIDING AT VADAKKEMATTATHIL, PUDUPPADI AMSOM,KOZHIKODE TALUK, KOZHIKODE DISTRICT. BY ADV. SRI.C.P.MOHAMMED NIAS RESPONDENT(S): --------------- 1. DEPUTY DIRECTOR OF ENFORCEMENT, DIRECTORATEO F ENFORCEMENT, WAFA BHAVAN, 2ND FLOOR,V.K.SANKUNNI ROAD, KOZHIKODE. 2. ASSISTANT DIRECTOR OF ENFORCEMENT, DIRECTORATE OF ENFORCEMENT, WAFA BHAVAN, 2ND FLOOR,V.K.SANKUNNI RAOD, KOZHIKODE-1. 3. ASSISTANT DIRECTOR OF INCOME TAX (INVESTIGATION) 8TH FLOOR, AAVAKAR BHAVAN, MANANCHIRA, KOZHIKODE -1. 4. COMMISSIONER OF INCOME TAX, INCOME TAX OFFICE, MANANCHIRA, KOZHIKODE. ADV. SRI.T.P.M.IBRAHIM KHAN,ASST.S.G OF INDI FOR R1,2 SRI.JOSE JOSEPH, SC, FOR INCOME TAX FOR R3,4 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 05/08/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: S. Siri Jagan, J. =-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-= W.P(C) No. 19146 of 2010 =-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-= Dated this, the 5th day of August, 2010. J U D G M E N T An amount of Rs. 88 lakhs was seized from a Scoda car bearing Reg. No. TN 43-Z/2500 from Wyanad . The enforcement authorities initiated proceedings. Ultimately, the proceedings by the enforcement authorities were dropped and on the strength of a warrant issued by the Director of Income-tax under Section 132A of the Income-tax Act, the amount was handed over to the income-tax authorities for further proceedings under the Income-tax Act. The petitioner now submits that the amount may be returned to the petitioner. The petitioner further contends that even assuming that the petitioner is liable for payment of any tax, that would only be 30% of the amount with penalty for which it is not necessary to withhold the entire amount, for which he undertakes to furnish security. 2. In view of the above contention, I directed the standing counsel for the Income-tax Department to file a statement detailing all these aspects. Now, the standing counsel has filed a statement giving a calculation as to what would be the amount due from the petitioner, if, ultimately the proceedings under Income-tax Act goes against him. The amount stated in the statement is Rs. 60,24,333/-. He would further submit that unless the entire proceedings are over, the amounts cannot be returned to the petitioner. Learned counsel for the petitioner would submit that it is irrational and unjust to retain the amount insofar as the petitioner is prepared to furnish security for the amount. He further submits that if worse comes to worst, the petitioner would only be liable to pay Rs. 60,24,333/- and at least the balance amount may be directed to be refunded to the petitioner without prejudice to the contentions of the petitioner that no amount can be deducted from the amount seized. 3. I have considered the rival contentions in detail. W.P.C. No. 19146/10 -: 2 :- 4. I am of opinion that insofar as even if everything goes against the petitioner, the amount payable would only be Rs. 60,24,333/-. The balance amount with the income-tax authorities can be refunded to the petitioner subject to further proceedings under the Income-tax Act and without prejudice to the contentions of the petitioner in the matter. Accordingly, this writ petition is disposed of with a direction to the income-tax authorities to return the amounts retained by them after deducting an amount of Rs. 65,00,000/- (Rupees sixty five lakhs only) pending further proceedings to be taken by respondents 3 and 4 without prejudice, of course, to the contention of the petitioner that no amount is due from him. The amount shall be refunded within one month. Sd/- S. Siri Jagan, Judge. Tds/ [TRUE COPY] P.S TO JUDGE.