J U D G M E N T

Sathish Ninan, J.

Is cash in a Bank account 'property' liable to attachment under Section 281B of the Income Tax Act, 1961 (“the Act”)? On the discussions in this judgment we hold, 'Yes'.

2. On 12.04.2022, the police seized a huge amount of cash (₹1,56,00,000/-) from a car in which respondents 1 and 2 in the writ appeal were riding. The seized amount was produced before the Judicial First Class Magistrate's Court.

3. On application by the Department under Section 132A of the Act, the Court directed release of the amount to the Department. Respondents 1 and 2 herein and others challenged the said order before this Court in Crl.M.C. Nos.5605/2022 and 5591/2022. This Court as per order dated 21.12.2023, directed release of the cash to them on furnishing a bond for the amount. The amount was accordingly released.

4. Upon investigation and being satisfied that there was no explanation for the cash nor was it accounted, and after recording reason to believe that income chargeable to tax has escaped assessment, proceedings were initiated in relation to the same by the issuance of notice under Section 148 of the Act.

5. Finding that the expected demand on assessment including p