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Non-release of seized assets properly explained under section 132(5) of the Income-tax Act, 1961. Analysis: Issue 1: Non-release of Seized Assets The petitioner's case revolves around the non-release of seized assets properly explained under section 132(5) of the Income-tax Act, 1961. The search and seizure operation conducted by the Income-tax Department resulted in the seizure of incriminating documents, accounts, cash, and valuables. The assessing authority found that certain jewelry worth Rs. 2,62,354 had been properly explained but was not released, contrary to the provisions of section 132(5) of the Act. The petitioner argued that the retention of properly explained seized assets by the Department violated statutory provisions. The key contention was that as per section 132(5), assets with proper explanations must be released immediately. The petitioner relied on the decision in Manik Chand Soni v. Asst. CIT [1995] 216 ITR 552 to support their case, which the court found applicable. Issue 2: Maintainability of Writ Petition The Income-tax Department raised objections regarding the maintainability of the writ petition under Article 226 of the Constitution, citing the existence of an alternative remedy and the nature of the impugned order. The Department argued that since the petitioner had already availed an alternative remedy by filing a petition with another authority, the writ petition was not maintainable. Additionally, they contended that the impugned order was not passed in a judicial or quasi-judicial proceeding, further challenging the writ petition's validity. However, the court disagreed with these objections, emphasizing that the availability of an alternative statutory remedy does not bar invoking Article 226 jurisdiction unless it is adequate and efficacious. The court also highlighted that when a question of law interpretation is involved, a writ petition remains maintainable despite alternative remedies. Citing the decision in Paradip Port Trust v. STO [1999] 114 STC 178, the court justified the petitioner's approach under Article 226. Final Judgment After considering the provisions of section 132(5) of the Act, the precedent in Manik Chand Soni's case, and the arguments presented, the court directed the Assistant Commissioner of Income-tax to release the seized assets forthwith, as they had been properly explained. The writ petition was allowed on this basis, with no order as to costs. This detailed analysis of the judgment highlights the core issues, legal arguments, and the court's decision, providing a comprehensive understanding of the case's intricacies.
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