Ramnath Kapoor vs CIT and Another

This petition is directed for seeking following reliefs :

Issue a writ of mandamus or such other writ or writs directing the respondents to release the seized assets of the petitioner and;

Issue any other writ or order or direction which the Hon''ble Court deems fit and proper in the facts and circumstances of the case.

The respondents had seized National Savings Certificates of Rs. 2,80,000 wrongly typed as Rs: 28,00,000 in para 5.3 of the petition, Kisan Vikas Patra of Rs. 18,83,000 and FDRs of Rs. 37,49,946 belonging to the petitioner.

The case of petitioner is that in spite of moving an application for release of the FDRs, the respondents have not released the same. In respect of Kisan Vikas Patra and National Savings Certificates an assessment order has been passed on 31-12-2010 Annex. P4. Now the prayer remains in respect of release of FDRs. Learned counsel appearing for the petitioner submitted that the petitioner is ready to furnish bank guarantee of Rs. 37,49,946 which is the face value of FDRs and on furnishing bank guarantee, the respondents be directed to release the FDRs to the petitioner. In this regard, petitioner has also filed an application IA No. 2356 of 2011.

Shri Lal, learned counsel appearing for the respondents submitted that the respondents have no objection if the petitioner furnishes bank guarantee of Rs. 37,49,946 in favour of the respondents and on furnishing the bank guarantee, the respondents shall release FDRs in favour of the petitioner.

From the perusal of the application IA No. 2653 of 2011 we find that in respect of Kisan Vikas Patra and National Savings Certificates, an assessment order has already been passed and now petitioner wants to take back the FDRs of Rs. 37,49,946 for which the petitioner is ready to furnish bank guarantee.

As the prayer is not opposed by the respondent, we finally dispose of this petition with the following directions :

on furnishing bank guarantee of Rs. 37,49,946 in favour of respondent No. 2, the respondents shall release the FDRs of the petitioner which were seized by the respondents in search operation dated 25-7-2009 for Rs. 37,49,946 from the lockers of the petitioner bearing No. 12.

The aforesaid bank guarantee shall remain in force for a period of one year from today and during this period, the respondents shall pass an order of assessment in respect of the FDRs also.

In case any liability is found of the petitioner in respect of the FDRs, the petitioner shall deposit the amount of the tax within a period of 60 days from the date of assessment order, failing which the respondents shall be entitled to encash the bank guarantee to that extent.