Bombay High Court
HARESH DALALversusTHE CUSTODIAN AND ANR
- Decided
- Disposal
- DISPOSED OFF
- Bench
- N JAMADAR
Holding
The court held that the Custodian must release Rs.4,57,553 to the Income Tax Department and may break the fixed deposit for that purpose.
Summary
The applicant, Haresh Dalal, filed a miscellaneous application seeking a court order directing the Custodian to pay the Income Tax Department the amount of Rs.4,57,553 as per a recovery notice dated 20 January 2026. The Custodian filed an affidavit in reply, supported by a chartered accountant’s verification that the tax claim for assessment year 2025‑2026 was valid. The court examined the independent assessment and found no impediment to granting the relief sought. Accordingly, the court ordered the Custodian to release the specified sum to the tax department and permitted the premature breaking of the fixed deposit to make the payment. The application was allowed and disposed of.
Issues considered
- Whether the Custodian should be directed to pay the amount specified in the Income Tax Department’s recovery notice.
- Whether the Custodian may break the fixed deposit prematurely to effect such payment.
Legislation cited
Subjects
- Income Tax
- Recovery Notice
- Custodian
- Fixed Deposit
- Special Court
- Securities
- Miscellaneous Application
- Tax Compliance
Judgment
15-SPMA-11-2026.DOC
Santosh
IN THE SPECIAL COURT AT BOMBAY
Constituted under the Special Court [Trial of Offences Relating
to Transactions in Securities] Act, 1992
MISC. APPLICATION NO. 11 OF 2026
Haresh Dalal ...Applicant
Versus
The Custodian And Anr …Respondents
Ms. Vjaya Rao, a/w Mrs. Sanaea Mohta, i/b Mulla & Mulla
and Carigie Blunt and Caroe, for the Applicant.
Mr. J. Chandran, through VC, a/w Ms. Shilpa Bhate, through
SANTOSH
SUBHASH VC and Ms. Payal Mehta, for the Custodian.
KULKARNI
Digitally signed by
SANTOSH SUBHASH CORAM: N. J. JAMADAR, J.
KULKARNI
Date: 2026.07.28
11:58:17 +0530 Judge, Special Court
DATED : 24th JULY, 2026
PC:-
1. Heard the learned Counsel for the parties.
2. This is an application seeking direction to the Custodian
to pay the Income Tax Department the amounts set out in the
recovery notice dated 20th January, 2026 aggregating to
Rs.4,57,553/-, being the amount recoverable up to February,
2026, from the attached account of the applicant, Notiied Party.
3. An afidavit-in-reply is iled to the application on behalf of
the Custodian.
4. A certiicate of veriication of M/s. Jain Chaudhary & Co.,
the Chartered Accountant, is annexed to the afidavit-in-reply.
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15-SPMA-11-2026.DOC
The Chartered Accountant has certiied that, based on the
documents and explanation placed before the Chartered
Accountant, the claim of income tax department for Assessment
Year 2025 – 2026, as stated in the notice (Exhibit-B), is found in
order.
5. In view of the aforesaid independent assessment by the
Chartered Accountant empanneled by the Custodian, there does
not appear any impediment in allowing the application. Hence,
the application stands allowed in terms of prayer Clause (a).
6. The Custodian is directed to release a sum of
Rs.4,57,553/- to the Income Tax Department towards the
compliance of recovery notice dated 20th January, 2026.
7. The Custodian is permitted to break the FD premature for
the purpose of making the said payment.
8. The application stands disposed.
[N. J. JAMADAR, J.]
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