1993 (11) TMI 9

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.... of Income-tax, Investigation Circle-1, Guwahati, directed release of the explained articles seized, the Department has not complied with the said order. Briefly stated, the facts are as follows : By virtue of a warrant of authorisation issued by the Director of Income-tax (Investigation), Calcutta, a search and seizure operation was carried out in the business and residential premises of th....

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....ssioner, Investigation Circle-I, Guwahati, and by letter dated July 19, 1993, addressed to the Commissioner of Income-tax, Shillong, it was stated that the assets mentioned in the assessee's petition dated June 26, 1993, were treated as being explained in the order under section 132(5) and, therefore, gold, jewellery and ornaments to the extent of 6,234.9 grams seized from the business premises an....

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....of the Income-tax Act, 1961. The relevant portion runs as follows : ".... and retain in his custody such assets or part thereof as are in his opinion sufficient to satisfy the aggregate of the amounts referred to in clauses (ii), (iia) and (iii) and forthwith release the remaining portion, if any, of the assets to the person from whose custody they were seized." Reading the said sub-section ....

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....urpose the seized properties which were explained cannot be retained. On the other hand, Mr. Talukdar has urged that section 226 of the Act empowers the Revenue even to retain the explained seized property. Mr. Talukdar has also drawn the attention of this court to section 132B in this regard, more particularly clause (iii) of sub-section (1). In my opinion, section 226 of the Act will come ....