MOHAMED THAHA Vs. FIRST INCOME TAX OFFICER

JUDGEMENT

(1.) PETITIONER, Mohamed Thaha, was taken into custody by the Sub-Inspector of Police Railway Police, Mayuram, on 22nd July 1964, as he was in possession of currency notes of one hundred rupee denomination to the tune of BS. 1,70,000 and he could not satisfactorily account for the same. The said currency notes were sent to the Court of the Sub-Magistrate, Mayuram. After investigation by the C. I. D., Crime Branch, Madras, further action was dropped by the police and petitioner, Mohamed Thaha, was released.

(2.) THE case of the petitioner is that the amount was entrusted to him by his employer Mohamed Ibrahim. On 10th November 1964, Mohamed Thaha and Mohamed Ibrahim filed a joint petition C. M. P. No. 433 of 1964 before the Sub-Magistrate, Mayuram, for the return of the said sum to Mohamed Ibrahim in view of the fact that further action had been dropped by the Railway police. THE first Income-tax Officer, Nagapattinam, filed a petition before the Sub. Magistrate, Mayuram, praying that the amount in deposit claimed by Moharned Ibrahim, may be ordered to be handed over to the Income-tax Department towards the income tax assessment on Mohamed Ibrahim for the year 1964-65. On 21st November 1964, Mohamed Ibrahim filed a memo before the Sub-Magistrate, Mayuram, agreeing to the withdrawal of Rs. 1,70,000 from the Court by the Income-tax Officer without prejudice to the rights of the partners of Yakoobia Traders Company. In dealing with a transfer application filed by the petitioner, the Sessions Judge. East Tanjore Division, directed the Sub-Magistrate to act on the memo filed by Mohamed Ibrahim and to comply with the demand of the Income-tax Officer. Accordingly the Sub-Magistrate, Mayuram, has directed the gum of Rs. 1,70,000 lying in court deposit to be transferred to the account of the Income-tax Department in accordance with the provisions of Section 226 (4j of the Income tax Act.