TaxTMI 
TaxTMI 
2025 (6) TMI 1407
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....jewellery and follow up action including search and seizure (requisition), assessment order against the petitioner No.1 & 2 as unconstitutional being without jurisdiction and contrary to third proviso to Section 132(1) of the Income Tax Act, 1961 r/w 132A(3) of the said Act and (ii) Direction for return of the seized stock in trade jewellery to the petitioner with compensation after setting aside the rejection order dated 24.12.24; (iii) Any other writ order or direction may also kindly be passed." The facts of the case, in short, are as under:- 2. On 12.7.2017 around 6.30 p.m. to 7.00 p.m. the GRP, Ratlam Police Station intercepted the petitioners and searched. From the possession of petitioners, 112 pieces of gold jewellery weighing....
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....2017. On 12.9.2017 respondent No.1 handed over the safe custody of the seized jewellery to respondent No.2. 4. After the issuance of the summon, a notice under Section 142(1) of the Income Tax Act dated 9.9.2019 was issued to the petitioners calling for the return of income tax for the assessment year 2018-19. Thereafter, notice under Section 143(2) of the IT Act was issued and thereafter final assessment order was passed on 24.12.2019. The petitioner challenged the assessment order by way of appeal before the CIT(A)-47, Mumbai. Vide order dated 12.10.2023 the appeal has also been dismissed. Against the said order, the petitioners have a remedy to approach the ITAT but has not been availed yet. 5. The petitioners approached this Court by ....
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....8. Learned counsel for the petitioners submits that the petitioners by way of this petition are challenging the warrant of authorization issued on 17.7.2017 and the order dated 4.12.2014 rejecting the application for handing over the stock-in-trade jewellery for which the writ remedy is an appropriate remedy available to him. 9. Shri Harsh Parashar, learned counsel appearing for the respondents on advance notice submits that the petitioners have challenged the assessment order before the Commissioner, Income Tax Appeal and vide order dated 12.10.2023 the appeal has been dismissed. The petitioner's claim for the release of gold/jewellery was rejected on 4.12.2024. Therefore, unless the demand order and the appellate order are set aside, the....
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....erim custody of the gold ornaments is concerned, the petitioners shall be free to claim the same from the Income Tax Authorities, who already have the interim custody of the gold ornaments, in accordance with the law. 10. With the aforesaid, petition stands allowed and disposed of." 11. The aforesaid order has attained finality. Despite the aforesaid order, the petitioners again filed an application before the Magistrate for the release of gold ornaments, which came to be dismissed vide order dated 28.5.2024. Again the petitioners filed a Criminal Revision before this Court, which has been dismissed vide order dated 9.8.2024. After the seizure, the petitioners were served with the notice under Section 142(1) of the Income Tax Act dated 9....
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.... default or is [deemed to be in default, or the amount of liability arising on an application made before the Settlement Commission under sub- section (1) of section 245C, may be recovered out of such assets]: [Provided that where the person concerned makes an application to the Assessing Officer within thirty days from the end of the month in which the asset was seized, for release of asset and the nature and source of acquisition of any such asset is explained] to the satisfaction of the Assessing Officer, the amount of any existing liability referred to in this clause may be recovered out of such asset and the remaining portion, if any, of the asset may be released, with the prior approval of the [Principal Chief Commissioner or] Chief....
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.... recovery of the amount of liabilities aforesaid by any other mode laid down in this Act. (3) Any assets or proceeds thereof which remain after the liabilities referred to in clause (i) of sub-section (1) are discharged shall be forthwith made over or paid to the persons from whose custody the assets were seized. (4) (a) The Central Government shall pay simple interest at the rate of [one half per cent for every month or part of a month] on the amount by which the aggregate amount of money seized under section 132 or requisitioned under section 132-A, as reduced by the amount of money, if any, released under the first proviso to clause (i) of sub-section (1), and of the proceeds, if any, of the assets sold towards the discharge of the e....