DINESH KUMAR SINGH,J. - (1.) This petition seeks issue of a writ, order of direction in the nature of Mandamus commanding the Income Tax Department to release amount of Rs.6,24,260/- lying in P.D. Account of Principal CIT (Central), Kanpur without deducting warehouse charges along with interest. It also seeks a direction to the Income Tax Department (hereinafter referred to as 'Department') to compensate the petitioner for the loss occurred due to alleged negligence on the part of the Department.
(2.) The petitioner is a firm which has been doing business of manufacture of Khandsari sugar and rab etc. A raid was conducted on the business and residential premises of the partners on 4th April, 1995 by the Department. A search and seizure operation was carried out under Section 132 of the Income Tax Act (hereinafter referred to as 'Act'). The authorities seized FDRs worth Rs. 14 Lakhs and cash amount of Rs.10,65,000/- along with sugar stock.
(3.) On 5th July, 1995, the petitioner wrote to the Assistant Commissioner of the Income Tax Investigation Circle, Moradabad that the goods (sugar) being perishable items should be released against the maximum guarantee of the tax at the highest rate leviable on the value of the stock. However, it seems that the authorities did not act upon on the said representation.;