Revenue Department cannot seize cash which does not form part of stock in trade

Last updated: 08 August 2023
Quick Summary
The Supreme Court has upheld a Kerala High Court ruling stating that the Revenue Department cannot seize cash found during a tax evasion search if it is not part of the business's stock in trade. In this case, the cash was a personal gift. The court agreed that seizing such funds would not align with the objective of detecting tax evasion.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme court in the matter of State Tax Officer v. Shabu George (Ib) Special Leave Petition (SLP) No.27670/2023 dated July 31, 2023]dismissed the SLP filed by the Revenue Department against the order of the Hon'ble Kerela High Court ordering the Revenue Department to release the cash seized during the search since, such cash does not forms part of stock in trade of business.

Citation :
State Tax Officer v. Shabu George (Ib) Special Leave Petition (SLP) No.27670/2023 dated July 31, 2023

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