Court grants petitioner liberty to file ITAT application for seized assets release. Consider extended custody period & tax discrimination.

The court disposed of the writ petition, granting the petitioner liberty to file an interlocutory application before the Income-tax Appellate Tribunal (ITAT) for the release of seized gold and jewellery. The ITAT was directed to promptly consider the application, taking into account the extended custody period of the assets and the potential discrimination in treatment between the petitioner and their brother regarding tax liabilities.

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Issues:
1. Petitioner seeks to quash an order and release seized gold, jewellery, and cash.
2. Previous writ petition disposed of with a direction to dispose of an appeal.
3. Dispute over release of assets due to pending appeal and interest waiver petition.
4. Third respondent's decision based on potential penalty and ownership dispute.
5. Court directs petitioner to approach the Income-tax Appellate Tribunal for relief.
6. Discrepancy in treatment of petitioner and brother's tax liabilities regarding asset release.
7. Court disposes of the writ petition, granting liberty to file an interlocutory application before ITAT for asset release.

Analysis:
1. The petitioner filed a writ seeking to quash an order and release seized assets. The previous writ petition directed the disposal of an appeal related to the seized gold and jewellery. The current dispute revolves around the release of assets due to a pending appeal and a petition for interest waiver under Section 220(2A) of the Income-tax Act.

2. The third respondent's decision to reject the release request was based on potential penalty implications and ownership disputes over the seized assets. The court directed the petitioner to approach the Income-tax Appellate Tribunal for appropriate interim relief, considering the pending appeal and interest waiver petition.

3. The petitioner highlighted a perceived discrepancy in the treatment of tax liabilities between the petitioner and their brother regarding the release of assets. The court disposed of the writ petition, granting the petitioner liberty to file an interlocutory application before the ITAT seeking the release of gold and jewellery. The ITAT was instructed to consider the application promptly, taking into account the extended custody period of the assets and the potential discrimination in treatment between the petitioner and their brother.

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