Income Tax Authorities can Seek Interim Custody of Currency Notes Produced Before Magistrate: Kerala HC

The Kerala High Court ruled that income tax authorities are entitled to seek interim custody of currency notes seized and produced before a jurisdictional magistrate. The court held that under Sections 132A and 132B of the Income Tax Act, authorities have the right to requisition and acquire assets, including currency notes, to satisfy tax liabilities. The decision resolves conflicting views from previous cases and clarifies that competent authorities can hold seized currency notes until the culmination of the inquiry or trial, provided the assets represent undisclosed income or property.