1986 (6) TMI 164

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....t, 1961. 2. On 26-5-1981, the preventive staff of Central Excise, Indore searched the residential premises of one Bhogi Ram Jain, who was a partner of M/s. Jain & Sons, Lashkar. The search resulted in the recovery of primary gold and gold ornaments, weighing 1133.250 gms in total as detailed in the Panchnama, Annexure "P-1". The premises were inhabited by Bhogi Ram's wife Smt. Sona Bai and daughter-in-law Smt. Chanda Bai, besides Bhogi Ram and others. Out of the gold and gold ornaments recovered, ornaments weighing 529.000 gms. and 434.500 gms. respectively were shown belonging to Smt. Sona Bai and Smt. Chanda Bai in Annexure "B" to the Panchnama, Annexure "P-1". Smt. Sona Bai claimed 4 new gold bangles weighing 28.500 gms. and prim....

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....ments and gold seized by the Central Excise Department on 26-5-1981 from residential premises of Bhogi Ram were held to be assets representing unexplained income of Bhogi Ram and subject to tax. 3. The learned Counsel for the petitioners submitted that the warrant of authorisation issued by the Commissioner of Income tax was in respect of the assets taken into custody by the Central Excise Department from the possession of Bhogiram. Consequently the gold and gold ornaments belonging to Sona Bai and Chanda Bai could not be seized by the Income Tax Officer. In support of his contention, he also relied on a letter, dated 28-7-1983 (Annexure "P-9" in M.P. No. 238/83) written by the Income Tax Officer to Smt. Chanda Bai, saying that no p....

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....ould show that the Income tax Officer was authorised to take delivery of the assets taken into custody by the Central Excise Department from the possession and control of Shri Bhogiram. It did not authorise him to take possession of all assets found in the residential premises of Bhogi Ram or the assets, which were shown belonging to Smt. Sona Bai and Smt. Chanda Bai. The Income Tax Officer could not, therefore, seize or take possession of the gold ornaments which were shown belonging to Smt. Sona Bai and Smt. Chanda Bai in Annexure "B" to the Panchnama, Annexure "P-1". The seizure of these gold ornaments and refusal to return the same to Smt. Sona Bai and Smt. Chanda Bai by the respondents in pursuance of the authorisation made under Secti....