HC to IT department: Release trader’s money forthwith or pay 10% interest

PATNA: The Patna high court on Thursday ordered the Income-Tax (IT) department to forthwith release the amount of Rs 26.9 lakh seized from a whole garment shop in Muzaffarpur by Election Commission of India (ECI) citing reason of misuse in electioneering.
The amount was seized from the shop by a flying squad of ECI on March 26 mere on basis of information that it was to be misused in election by influencing voters. Following it, the petitioner M/s Indian Traders had moved high court urging it for directing concerned official to immediately release the money as the act of seizure was violation of norms of ECI. The money was later handed over to IT department by ECI for further action.
A division bench of Justice Jyoti Saran and Justice Anjani Kumar Sharan, allowed the writ petition while pronouncing its judgement on the matter and simultaneously directed the IT department that if it fails to release the money forthwith and not more than within six weeks, it will have to pay an interest of 10% on the entire amount to the petitioner from the date it was seized.
The petitioner was represented by counsel Gautam Kejriwal while ECI was represented by Siddhartha Prasad.
Counsel Archana Sinha, appearing for IT department, put all her efforts to convince court that the department had jurisdiction to investigate into the source of money seized by ECI as it was above Rs 10 lakh but the court did not accepted any of her argument on the matter.
While rapping the counsel on several occasion, the court said repeatedly gave oral observations that there was difference between a common man and a person fighting election for a political party and there is also distinction between a proceeding initiated by the ECI related to elections and the one initiated by IT department under the Income-Tax Act.
The court also raised question on the ECI that how did it transferred the money to IT department when the proceedings were not under IT Act.
In the present case, the proceedings were initiated by ECI and its three member committee had even issued directions on May 13 that the seized money may be deemed to be released from the its level from March 27 as it had no relation with use in the ongoing general election. The direction was issue after the court had directed ECI to take decision on the seized money within 48 hours on May 10.