Sanghvi Dhanrupji Devaji & Co Vs Union of India & Ors (Bombay High Court)
The Bombay High Court (Bombay High Court) heard a writ petition challenging an order dated 17 May 2024 rejecting an application for release of seized jewellery.
The factual background was that on 8 November 2023, two persons claiming to be employees of the petitioner firm were intercepted by the Railway Police while travelling to Jabalpur, Madhya Pradesh. The employees stated that they were carrying jewellery to display to jewellers and to book orders. The jewellery was seized by the Railway Police and subsequently handed over to the Income Tax Department. As the Investigation Wing was not satisfied with the explanations and documents produced during recording of statements, the jewellery was requisitioned under Section 132A of the Income Tax Act, 1961 on 20 November 2023.
The petitioner claimed that the seized jewellery was its stock-in-trade and filed an application dated 6 December 2023 before the Assistant Director of Income Tax (Investigation), Jabalpur for release of the jewellery. As the application was not decided, the petitioner approached the Madhya Pradesh High Court, which on 8 February 2024 directed the Department to decide the application within 30 days. Subsequently, a review petition was filed by the Department seeking liberty to transfer the case to the jurisdictional Assessing Officer if required. By consent, the review was allowed, time was extended, and it was directed that the competent authority decide the application on merits.
