TaxTMI 
TaxTMI 
2026 (2) TMI 1096
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.... lockers of petitioner No. 1 resulting in the seizure of jewellery which according to the income tax authorities was undeclared. A Panchnama dated 03.03.2022 with regard to the seized jewellery of petitioner No. 1 and separate panchnama dated 05.03.2022 with regard to the seized jewellery of petitioner No. 2 was prepared. 3. Petitioner No. 1 stated before the respondent authorities that out of the seized jewellery, 901.030 grams belonged to petitioner Nos. 3 and 4 and the remaining seized jewellery was that of petitioner Nos. 1 and 2, who were husband and wife and that the jewellery of petitioners No. 1 and 2 was wedding jewellery; received by way of inheritance; gifts and that some of it had also been purchased by petitioner Nos. 1 and 2. 4. Through assessment order dated 28.03.2024, the stand of petitioner No. 1 with regard to 901.030 grams of the seized jewellery belonging to petitioner Nos. 3 and 4 was accepted because such jewellery was found to have been duly declared by petitioner No. 4 in the wealth tax returns filed much prior to the search operation at the residential premises and bank lockers of petitioner No. 1. However, the stand of petitioner No. 1 with regard t....
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....items of the seized jewellery which had been added to petitioner No. 1's income and intimated the same to the Income Tax authorities. 10. On 05.03.2025, petitioner No. 1's Chartered Accountant, wrote to the respondent Income Tax authorities seeking release of 26 jewellery items out of the 27 items which had been seized through Panchnama 1 and 7 out of the 8 jewellery items seized through Panchanama 2. The respondent authorities were further informed on behalf of petitioner No. 1 that the present market value of these jewellery items, as per the valuation done by the respondents' valuer was Rs. 1,20,12,074/- and since petitioner No. 1 had already submitted with the respondent authorities a bank guarantee for Rs. 1.25 crore, the said seized jewellery items be released without delay. 11. Apparently, after verifying the contents of the aforesaid representations made on behalf of petitioner No. 1, through letter dated 21.03.2025, the Income Tax Officer, Headquarter (Central), Gurugram wrote to the Additional Commissioner of Income Tax, Central Range, Chandigarh conveying the approval of the Principal Commissioner of Income Tax (Central), Gurugram for release of the seized 26 jewel....
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....ent authorities to withhold its release. 14. With regard to the release of 33 out of 35 remaining seized jewellery items to petitioner No. 1 it was submitted that in response to petitioner No. 1's request for release of his seized jewellery, the respondent authorities had got the said 33 seized jewellery items cumulatively valued at Rs. 1,20,12,074/-; through order dated 21.03.2025 the Principal Commissioner of Income Tax (Central), Gurugram had approved the release of the afore jewellery items to petitioner No. 1 against bank guarantee for Rs. 1.25 crore already furnished by petitioner No. 1; on 08.04.2025 the Joint Commissioner of Income Tax (OSD), Central Circle-I, Chandigarh had addressed a letter to the Deputy Director of Income Tax (Inv.), Investigation Wing, Parwanoo to intimate to petitioner No. 1 a suitable date and time to be handed over the 33 seized jewellery items against receipt and that after the passing of the aforesaid two letters the delay in release of the 33 jewellery items was attributable only to the respondent authorities for which the petitioners could not be put to prejudice especially when the circular dated 16.10.2023, issued by the CBDT also laid down....
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.... the assessee consenting to encashment of the bank guarantee on 14th day prior to expiry of the Bank Guarantee, should also be furnished along with the Bank Guarantee. Note-1. For determining present market value of Jewellery, revaluation of Jewellery from approved valuer is required. Valuation charges to be paid by the assessee concerned. Note-2. Preferably Bank Guarantee expiry date may be chosen as 30th April after stipulated period of 5 years. AOs should maintain a register for such Bank Guarantee and it should be handed over to his successor & included in charge report. Reference is also invited to Para 4.15.7 of Chapter 24 (Post Assessment Collection Procedure) of Manual of Office Procedure, 2019) Note-3 The Assessing Officer, with the approval of Pr.CCIT/CCIT or Pr.CIT/CIT, shall in the interest of the revenue, invoke the Bank Guarantee, if the assessee fails to renew and submit a new Bank Guarantee from a Scheduled Bank for an equal amount, 15 days before the expiry of the Bank Guarantee. Note-4. All Pr.CCsIT/CCsIT or Pr.CsIT/CsIT should ensure that the quantum of bank guarantee, in any case, should not be less than the valve of seized as....
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....5 days of receipt of this letter the assessee should furnish Bank Guarantee or cash (Banker's Cheque/ Demand Draft), as the case may be, alongwith an affidavit that this Bank Guarantee or cash (Banker's Cheque or Demand Draft) deposited in P.D. Account, may be adjusted against liability mentioned in para-2(ii) above and in case of Bank Guarantee, if he fails to renew the Bank Guarantee and submit it to the AO prior to 15 days of expiry then the AO can invoke the same on 14 day prior to expiry. vi) on receipt of Bank Guarantee or cash (Banker's Cheque or Demand Draft) the Pr.CCIT/CCIT or PY.CIT/CIT shall release the seized assets within 15 days." 17. As per clause 5(a) of the circular seized assets can be released at any time and with the approval of the Principal Chief Commissioner of Income Tax/Chief Commissioner of Income Tax or the Principal Commissioner of Income Tax/ Commissioner of Income Tax but only if the assessee unconditionally accepts its ownership as well as the valuation of the seized assets determined at the time of the search and seizure operation and makes a request in writing for release of the seized assets alongwith an unconditional and i....
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....tioner Nos. 3 and 4 regarding which the respondents have expressed no objection qua its release to petitioner Nos. 3 and 4 as veri7ication done by them reveals that petitioner No. 4 had declared the same in the wealth tax return filed for the year 2012-2013. 21. Out of the remaining 35 seized jewellery items, petitioner No. 1 seeks release of 33 of them but against the bank guarantee of Rs. 1.25 crore already submitted by him whereas the respondent authorities are requiring him to furnish a bank guarantee for Rs. 1,54,10,000. 22. In response to petitioner No. 1's request for release of his 33 seized jewellery items the respondents had got the said jewellery items revalued by their own valuer as per whom the present market value of the 33 jewellery items in question, as on 09.12.2024, was Rs. 1,20,12,074/-. Accordingly, on 03.01.2025, petitioner No. 1 furnished with the respondent authorities a bank guarantee for Rs. 1.25 crores which adequately covered the value of the said jewellery items. Thereafter, through letter dated 21.03.2025 the Income Tax Officer, Headquarter (Central), Gurugram wrote to the Additional Commissioner of Income Tax, Central Range, Chandigarh conveying ....
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.... at Rs. 1,20,12,074/- seized from Locker at Punjab & Sindh Bank, Sector-17B, Chandigarh in the case of Sh. Sanjeet Singh (AQQPS7197E) (M/s Chandigarh Distillers & Bottlers Group) during search action u/s 132 of the Income Tax Act (D.O.S. 03.03.2022) as recommended by the AO and the Range Head in view of the fact that no adverse comments has been offered by the AO/RH against the request of the assessee in the matter. As regards the pending penalty proceedings as well as outstanding demand, the taxpayer has furnished a bank guarantee for Rs.1,25,00,000/-. The AO may go through the contents of the Bank Guarantee and satisfy himself about its validity/authenticity. 4. In this connection, I am further directed to request you to kindly direct the AO concerned (i.e. DCIT, Central Circle-1, Chandigarh) to keep the original Bank guarantee in personal custody and to convey that the AO shall be personally responsible for ensuring that the Bank Guarantee is renewed in time and is handed over to his successor as part of handing over at the time of his transfer." 23. A consequence of above was another letter dated 08.04.2025, addressed by the Joint Commissioner of Income Tax (OSD), C....