Seized jewellery must be returned when the related reassessment addition is deleted, subject to adequate security.

Seized jewellery was no longer justified in departmental custody after the appellate authority set aside the reassessment for that jewellery and deleted the related addition. The Court held that, in these circumstances, retention of the jewellery could not continue, while the Revenue's interest could still be protected by requiring adequate security before release. The jewellery was therefore directed to be returned to the assessee on furnishing security to the satisfaction of the Assessing Officer.

---

---

Issues: Whether the seized jewellery should be returned to the assessee pending further proceedings, on furnishing adequate security.

Analysis: The jewellery was seized during a search and its value had been treated as income in reassessment, but the appellate authority had set aside the reassessment in respect of the jewellery and deleted the related addition. In these circumstances, the continued retention of the jewellery was not warranted, though protection of the Department's interest could be secured by insisting on adequate security before release.

Outcome: The jewellery was directed to be returned to the petitioner on furnishing adequate security to the satisfaction of the Assessing Officer.

---