2003 (3) TMI 93 - HC - Income Tax

Whether the respondents were liable to release the jewellery to the petitioner because that is the entire stock-in-trade of them and that their business is at a stand still for the last nine months? - The assessing authority will examine the books of account and other material that may be produced before him and record a finding whether the jewellery seized from Rajiv Kapoor which is presently lying at Bhopal has been accounted for or not. In case the assessing authority comes to the conclusion that the jewellery has been accounted for he shall pass an order releasing the same forthwith. In case such an order is passed the concerned Commissioner of Income-tax at Bhopal will release the jewellery forthwith to the representatives of the petitioner.

Summary

Issues: Unaccounted jewellery seizure, legality of findings, release of jewellery, examination of account books

In this case, the petitioner's son was carrying gold jewellery when an income tax raid took place at a jeweler's shop in Bhopal. The income tax authorities seized the jewellery, suspecting it belonged to the petitioner's business, J. L. Kapoor and Sons. The petitioner challenged this finding, arguing that the jewellery was part of their business's stock reflected in the account books. The court directed the petitioner to appear before the assessing authority with the account books and stock register to determine if the seized jewellery had been properly accounted for. If accounted for, the jewellery was to be released immediately. The court emphasized the need for a thorough examination of the account books to resolve the issue. The judgment concluded with directions for the release of the jewellery if found to be properly accounted for, thereby disposing of the writ petition.