2021 (5) TMI 491 - HC - Income Tax

Release of jewellery as retained/seized in the course of search - HELD THAT - As given to understand that the process of considering the petitioner's representation was ongoing and additional time was sought. It is brought to notice today that on 08.04.2021, the Deputy Commissioner of Income Tax, Central Circle -1(2) has conveyed the approval of the Principal Commissioner of Income Tax for release of 5825.59 gms of jewellery and communicated the same to the Assessing Officer. The letter states that the process of release is underway. This is recorded. In the light of the same, the mandamus sought stands achieved. Let the process of release be completed after observing all formalities and procedures as required under the Rules within a period of four (4) weeks from today.

Summary

Issues:
1. Mandamus for release of seized jewellery
2. Challenge to order of remand by Income Tax Appellate Tribunal
3. Pending assessment challenge before Commissioner of Income Tax (Appeals)

Analysis:
1. The petitioner sought a mandamus for the release of jewellery seized during a search on 21.12.2012. The assessment related to this seizure was appealed to the Income Tax Appellate Tribunal and subsequently remanded. The Income Tax Appellate Tribunal's remand order was challenged by the revenue and dismissed by a Division Bench of the High Court. The assessment was completed on 31.12.2018, with the Assessing Authority stating that all taxes and interest had been paid, resulting in a quantified demand of 'nil'. The petitioner requested the return of the seized jewellery on 09.03.2020, considering the remittance of the entire demand and protection of the revenue's interests.

2. The proceedings were ongoing, with the petitioner's representation being considered, and additional time was sought. On 08.04.2021, the Deputy Commissioner of Income Tax conveyed approval for the release of 5825.59 gms of jewellery, as requested by the petitioner. The Principal Commissioner of Income Tax approved the release, and the process was underway. The communication from the Assessing Officer confirmed the approval and outlined the steps being taken for the release. As a result, the mandamus sought by the petitioner was effectively achieved, and the release process was directed to be completed within four weeks, adhering to all necessary formalities and procedures.

3. Consequently, the High Court ordered the completion of the release process within four weeks from the judgment date. The Writ Petition was closed without costs, along with the connected Miscellaneous Petition. The judgment effectively resolved the issue of the seized jewellery's release, ensuring compliance with the legal procedures and directives provided by the Principal Commissioner of Income Tax.