TaxTMI 
TaxTMI 
2016 (5) TMI 401
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....ery narrow compass and with the consent of the learned counsel for the respective parties, the matter was taken up for final hearing. 3. By this petition under Article 226 of the Constitution of India, the petitioner seeks a direction to the respondents herein to forthwith release the seized ornaments of the petitioner. 3.1 On 1st August, 1996, the petitioner who is an income-tax assessee, came to be searched under section 132 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") and gold ornaments came to be seized by the raiding party from the petitioner. Thereafter, the petitioner, by a letter dated 10th March, 2014, addressed to the Commissioner of Income Tax-3, Ahmedabad stated that during the course of search procee....
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....ore, by a letter dated 6th January, 2016 put that fact on record and requested the first respondent to issue a challan so that the petitioner could make arrangement of funds. The office of the first respondent handed down a duly filled in challan to the petitioner on 9th February, 2016, whereupon the petitioner paid Rs. 22,40,101/- to the Income Tax Department by depositing such amount in ICICI Bank Limited on 10th February, 2016. It is further the case of the petitioner that by way of abundant caution, before making payment, he addressed a letter dated 19th January, 2016 to the Principal Commissioner of Income Tax-5, Ahmedabad, the second respondent herein, narrating the above facts and requesting him to grant approval for release of the s....
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....ritten word given by one of its officers who is a Deputy Commissioner of Income Tax in consultation with the Commissioner, despite the fact that the petitioner has already paid the moneys in accordance with the promise. It was further submitted that some time in the past, the Departmental officers had thought of auctioning these ornaments so as to recover its dues from the petitioner but then wiser counsel prevailed upon them and it was decided that instead of auctioning the ornaments, the petitioner may be called upon to pay the market price of the ornaments which would save the hassles of the Departmental officers and it is in this background that the petitioner had addressed a letter dated 10th March, 2014 to the Commissioner. 4.1 It ....
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...., under communication dated 12th September, 2014, had informed the Deputy Commissioner of Income Tax to take necessary action for release of the seized gold ornaments against payment of equivalent amount. It was submitted that it is in view of such misunderstanding that the petitioner was called upon to make payment of Rs. 22,40,000/- (rounded off). It was submitted that, therefore, the respondents should not be held to the promise made to the petitioner and that at best, the cash which has been paid by the petitioner can be returned to him. 6. Thus, the facts reveal that pursuant to the application dated 10th March, 2014 made by the petitioner for return of the seized ornaments, the Commissioner of Income Tax, Ahmedabad-III conveyed tha....
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....Additional Commissioner in informing the Deputy Commissioner to take necessary action for release of the seized ornaments against payment of equivalent amount. On a reading of the instructions conveyed by the Commissioner of Income Tax-III, it does appear that there is some misunderstanding on the part of the respondents as regards the decision of the Commissioner of Income Tax-III. Nonetheless, the position as on date is that pursuant to a representation made by the respondents, albeit on a misunderstanding, the seized ornaments have been valued by the Department and the petitioner has deposited an equivalent amount with the respondents. Since the petitioner has deposited the amount of Rs. 20,40,101/- pursuant to a promise made by the Depa....
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....ys to the Commissioner of Income-tax a draft of an amount equal to the value of the seized assets; and (iv) agrees in writing that the amount may be deposited in the PD account and may be used for adjustment against tax liability in accordance with the provisions of section 132B of the Act. Such amount should be deposited in the P.D. account and dealt in the manner laid out in Board Instruction No.11 of 2006." 9. In the context of such instructions, it may be noted that the petitioner has duly made an application to the Commissioner for release of the ornaments. Pursuant thereto, the seized ornaments have been got valued through the Government approved valuer and it is not the case of the Department that the valuation made by th....