INDIAN TRADERS Vs. STATE OF BIHAR

JUDGEMENT

(1.) This writ petition filed under Article 226 of the Constitution of India raises question on the seizure of cash amounting to Rs.26,90,000/- carried out by the Flying Squad led by respondent no.8, Executive Magistrate, Muzaffarpur and alongside seeks a direction to the respondent authorities especially the Income Tax Officer, QRT (respondent no.6) to release the seized cash which was deposited in the District Treasury at Muzaffarpur but has since been transferred to the Income Tax Department.

(2.) The petitioner is a proprietorship firm engaged in wholesale trading of ready-made garments having its place of business in Zila Parishad market at Muzaffarpur. The petitioner is registered under the Goods and Service Tax Act, 2017 and is an assessee under the Income Tax Act, 1961 (hereinafter referred to as 'the Act').

(3.) The complaint of the petitioner is that on 26.3.2019 a Flying Squad under the leadership of respondent no.8 entered his business premises claiming knowledge about huge cash lying with the petitioner which according to them was meant for use in Elections for influencing voters in violation of the Election Laws and Guidelines. The proprietor of the petitioner was shocked because no notice had been received by him in this regard and thus, the authority of the Flying Squad was unknown. The proprietor of the petitioner handed over the cash which was a collection of payments received from different customers and meant for different purposes. The cash was not even counted by the Flying Squad, who simply collected the same, prepared a seizure list and left the business premises.