Patna High Court
Gautam KanodiaversusThe Principal Commissioner of Income Tax (Central),
- Decided
- Disposal
- DISPOSED
Holding
The Court ordered the release of the seized cash, foreign currency and documents within three weeks and permitted the petitioner to claim interest, thereby disposing the writ petition.
Summary
Petitioner Gautam Kanodia filed a writ petition under the High Court of Patna seeking a mandamus directing the Income Tax authorities to release seized gold ornaments, jewellery, cash, foreign currency and documents, invoking sections 132B(3) and 132(9A) of the Income Tax Act, 1961, and to award interest under section 132B(4)(a). The respondents contended that the gold ornaments had already been released and that a decision to release the cash, foreign currency and documents had been taken. The Court examined the submissions and found no dispute on the release of the gold, but directed the authorities to release the remaining seized cash, US dollars, British pounds and documents within three weeks. It further held that the petitioner may file a claim for interest on the seized cash within two weeks of receipt, and that such claim must be adjudicated within another two weeks. Accordingly, the petition was disposed on these terms, granting the relief sought regarding the release of assets and providing a procedural route for interest claims. The decision underscores the application of sections 132B and 132 of the Income Tax Act in matters of seizure and custodian responsibilities.
Issues considered
- Whether the Income Tax authorities are obligated to release the seized gold ornaments, jewellery, cash, foreign currency and documents under section 132B(3) of the Income Tax Act.
- Whether the Assistant Commissioner of Income Tax (Central), Circle-3, Patna is the custodian of the seized assets under section 132(9A).
- Whether the petitioner is entitled to interest on the seized cash under section 132B(4)(a).
Legislation cited
- Income Tax Act, 1961 — s. 132(9A), 132B(3), 132B(4)(a)
Subjects
- Income Tax
- seizure
- mandamus
- section 132B
- interest on seized assets
- custodian
- writ petition
- asset release
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.9002 of 2025
======================================================
Gautam Kanodia S/o Late Indra Kumar Kanodia, resident of 504, Pushpanjali
Plaza, Basant Bihar Colony, Boring Road, Patna, P.O.- S.K. Puri, P.S.- S.K.
Puri, District-Patna, Bihar - 800013.
... ... Petitioner/s
Versus
1. The Principal Commissioner of Income Tax (Central), Patna
2. The Principal Director of Income Tax (Investigation), Patna
3. The Principal Director of Income Tax (Investigation), New Delhi
4. The Assistant Commissioner of Income Tax (Central), Circle-3, Patna
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Ajay Rastogi, Sr. Advocate
Mrs. Smriti Singh, Advocate
Mr. Anubhav Khowala, Advocate
For the Respondent/s : Mrs.Archana Sinha @ Archana Shahi, Sr. Standing
Counsel Income Tax
Ms. Shilpi Keshri, Jr. Income Tax
Ms. Swaran Ray, Advocate
======================================================
CORAM: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
ORAL ORDER
(Per: HONOURABLE MR. JUSTICE MOHIT KUMAR SHAH)
2 25-03-2026 The present writ petition has been filed seeking the
following reliefs:-
“(i) For issuance of writ of mandamus or any other
appropriate writ for a direction to the Respondent
Authorities for releasing the seized gold ornaments and
jewellery from the bedroom of the petitioner weighing
724.4 grams valued that Rs.19,10,130/- (Rupees Nineteen
lacs ten thousand one hundred and thirty only) and Gold
ornaments and jewellery from the bedroom of mother of
the petitioner namely Late Pushpa Devi Kanodia
weighing 97.8 grams valued at Rs.2,64,060/- (Rupees
Two lacs sixty four thousand and sixty) and cash worth
Rs.6,00,000/- and 710 US Dollar, 100 British Pound and
Patna High Court CWJC No.9002 of 2025(2) dt.25-03-2026
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documents vide Identification Mark AS-01 to AS-10 in
terms of section 132B(3) of the Income Tax Act, 1961
(hereinafter referred to as 'Act').
(ii) For holding that the Assistant Commissioner of
Income Tax (Central), Circle-3, Patna (R-4) being the
Assessing Officer of the petitioner having jurisdiction
over his case and thus, is custodian of the seized assets of
the petitioner in terms of section 132(9A) of the Act.
(iii) For issuance of writ of mandamus or any other
appropriate writ for a direction to the Respondent
Authorities for payment of interest under section 132B(4)
(a) on seized cash in favour of the petitioner.”
2. At the outset, the learned senior counsel for the
respondents has submitted by referring to the counter affidavit
filed in the present case that gold ornaments and jewellery have
already been released in favour of the petitioner, which is not
disputed by the learned senior counsel for the petitioner. As far
as seized cash, US Dollar, British Pound and documents in the
connected case of Gautam Kanodia relating to Kanodia Group
of cases are concerned, it is submitted by the learned senior
counsel for the respondent that a decision has already been
taken to release the same.
3. In view of the aforesaid, we deem it fit and proper
to direct the respondent authorities to release seized cash, US
Dollar, British Pound and documents within a period of three
weeks from today.
4. It is needless to state that as far as the issue relating to
Patna High Court CWJC No.9002 of 2025(2) dt.25-03-2026
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payment of interest on seized cash amount as per Section 132
B(4)(a) of the Income Tax Act is concerned, the petitioner
would be at liberty to file appropriate claim before the
appropriate authority with a period of two weeks from the date
of receipt of seized cash amount, which shall be adjudicated by
the concerned authority within a period of two weeks, thereafter.
5. The writ petition stands disposed off on the
aforesaid terms.
(Mohit Kumar Shah, J)
(Arun Kumar Jha, J)
kanchan/-
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