Court orders release of seized assets within two weeks

The court directed the respondents to release the seized fixed deposit receipts, national savings certificates, and jewellery within two weeks from the judgment date. The decision allowed the petitions, making the rule absolute without any costs.

---

---

Issues:
Non-return of fixed deposit receipts and jewellery seized during Income Tax Act search.

Analysis:
The judgment involved two petitions seeking relief under Article 226 of the Constitution of India. The main issue was the non-return of fixed deposit receipts and jewellery seized during a search under Section 132 of the Income Tax Act, 1961. The search conducted on the residential premises resulted in the seizure of various assets, including cash, jewellery, and fixed deposits. Subsequently, assessments were completed, leading to demands and penalty orders. The Assessing Officer passed a penalty order for various years, and rectification applications were filed to address discrepancies in the demands. The net amount payable by the assessee was determined after adjustments. The cash seized during the search was adjusted against outstanding demands, leaving the fixed deposit receipts and jewellery as the remaining issue for return.

The court noted that after adjusting the outstanding demand in one of the assessee's cases, the balance fixed deposit receipts and jewellery should be returned promptly. The judgment directed the respondents to release the seized fixed deposit receipts, national savings certificates, and jewellery within two weeks from the judgment date. The decision allowed the petitions, making the rule absolute without any costs.

In conclusion, the judgment addressed the non-return of fixed deposit receipts and jewellery seized during an Income Tax Act search. It highlighted the adjustments made for outstanding demands and directed the authorities to return the remaining assets promptly.

---