Income Tax Dept competent to have Interim Custody of Seized Currency Notes: Kerala HC

The Kerala High Court ruled that the Income Tax Department is competent to retain interim custody of seized currency notes during ongoing investigations or proceedings. The case involved the seizure of cash during a raid, and the taxpayer’s appeal for the return of the funds. The court upheld the department’s right to retain the money until the investigation was completed, reinforcing the department’s authority in cases of suspected tax evasion. This ruling affirms the legal standing of the department in handling financial evidence during tax probes.