Return of seized assets follows accepted explanations and no assessed tax liability, requiring release of jewellery and fixed deposits.

Accepted explanations for jewellery and fixed deposit receipts seized in a search, coupled with the absence of any determined tax liability and no further authorisation for retention, required release of the assets. The explanations of the petitioner and her mother were accepted in the order under section 132(5) of the Income-tax Act, 1961, and the record showed no tax liability had been assessed against the petitioner. On that basis, the petitioner was entitled to receive back the jewellery and fixed deposit receipts, and the respondents were directed to return them.

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Issues: Whether the petitioner was entitled to return of jewellery and fixed deposit receipts seized during search after the explanations offered were accepted and no tax liability was determined.

Analysis: The explanations furnished by the petitioner and her mother were accepted in the order passed under section 132(5) of the Income-tax Act, 1961 in respect of the jewellery and the fixed deposit receipts. The record showed that no tax liability had been determined against the petitioner and no order authorising further retention of the accepted assets had been passed.

Conclusion: The petitioner was held entitled to receive back the jewellery and fixed deposit receipts, and the respondents were directed to return the assets.

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