HC Orders Conditional Release of Seized Jewellery and Cash After Income Tax Search:

HC Orders Conditional Release of Seized Jewellery and Cash After Income Tax Search The petitioners, who are members of the same family, challenged the continued retention of gold jewellery, bullion, cash/ forex and other valuables seized by the Income Tax Department during a search conducted between 17.12.2024 and 20.12.2024. They contended that all seized assets were explained or explainable and that the Department had not yet concluded proceedings under Section 158BC of the Income Tax Act, 1961.  The total value of seized jewellery and bullion was assessed at about Rs. 5.95 crore, apart from cash/forex of around Rs. 40 lakh. Main Issue: Whether the Income Tax Department could continue to retain seized jewellery, bullion and cash despite non-finalisation of proceedings, and whether conditional release could be ordered to balance the interests of the assessees and the Revenue. HC's Order: The Delhi High Court allowed the writ petitions and directed the conditional release of the seized assets. The Court recorded the petitioners’ willingness to safeguard the Revenue by depositing advance/self-assessment tax and accepted the proposal that the two petitioners would deposit Rs. 1.25 crore each. The Department was directed to release the entire seized jewellery, bullion and cash/forex within seven days. The Court clarified that it had expressed no opinion on the merits of the assessees’ explanation and left all contentions open for adjudication in appropriate proceedings. To Read Full Judgment, Download PDF Given Below