Income Tax Authorities Have The Power To Seek Interim Custody Of Currency Notes Produced Before The Magistrate: Kerala High Court

The Kerala High Court affirmed that the Income Tax Department can retain interim custody of seized currency notes during ongoing investigations, provided the magistrate authorizes such retention. This ruling came from a case where a taxpayer challenged the department's custody of seized cash during a tax raid. The court emphasized that the seized assets play a crucial role in the investigation and can be retained by the department to secure tax recovery or assess financial irregularities, ensuring that legal protocols are followed.