Case Law Details
Koshaliya Devi Rastogi Vs A/DCIT (Delhi High Court)
Delhi High Court Orders Conditional Release of Seized Jewellery and Cash on Advance Tax Deposit
The Delhi High Court disposed of a batch of writ petitions filed by members of the Rastogi family, seeking release of gold jewellery, bullion, cash and forex seized during a search conducted between 17.12.2024 and 20.12.2024. The petitioners contended that the seized assets were fully explained, that they were regular assessees, and that proceedings under Section 158BC had not yet been concluded.
Taking note of the personal and humanitarian circumstances—including senior citizens above 80 years of age and an impending family wedding in March 2026—the Court balanced the interests of the Revenue and the assessees. While the Department sought protection of its interests by insisting on deposit of probable tax liability, the petitioners agreed to make advance/self-assessment tax payments.
Accordingly, the Court directed Sonali Rastogi and Manit Rastogi to deposit ₹1.25 crore each as advance/self-assessment tax by 15.01.2026. Upon such deposit and production of challans, the Department was directed to release the entire seized jewellery (about 6.862 kg of gold), bullion and cash/forex (around ₹40 lakh) within seven days.
The Court clarified that no finding was being recorded on the merits of the taxability or explanation of the seized assets, and both parties were left free to raise their respective contentions in the pending assessment proceedings. The order thus ensures temporary relief and liquidity to the assessees while adequately safeguarding Revenue interests.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. By way of present batch of Writ Petitions, the petitioners (who are family members) have prayed that the movable assets, more particularly the gold jewellery, bullion, cash/forex and other valuable articles seized during the course of search conducted at their premises between 17.12.2024 and 20.12.2024 by the respondent-Income Tax Department be directed to be released, as the Department has not even finalized the proceedings under Section 158BC of the Income Tax Act, 1961(hereinafter referred to as ‘the Act of 1961’).
2. Sachit Jolly, learned Senior Counsel for the petitioner argued that the petitioners are assessees and have been furnishing their returns and paying applicable income tax regularly.
3. It was asserted that during the course of search, the Department alleged above referred valuables to be out of the undisclosed income and seized them, though every seized article is explained/explainable.
4. He nevertheless submitted that Ms. Ananya Vir, petitioner in W.P.(C) No. 7473/2025 is getting married in March, 2026, for which the above articles are required as the members of the family have emotional attachment with the jewellery.
5. While praying for release of these articles, he submitted that the petitioners are prepared to furnish solvent security equal to the value of the jewellery and cash, though he argued that the demand, (if raised) qua the above referred seized jewellery, cash and bullion would be much lesser than their value, which even as per the department valuer is about Rs.5,95,00,000/- (apart from the cash/forex amounting to about Rs.40,00,000/-).
6. Learned Counsel for the respondent-Department, on the other hand objected to the petitioners’ prayer and submitted that the petitioners be directed to deposit an amount equal to the probable tax liability, as advance tax/self-assessment tax for Assessment Year 2025-26 so that in case, any demand is raised, the interest of Revenue remains protected.
7. Though with some reluctance, however on instructions, Mr. Sachit Jolly, learned Senior counsel for the petitioners agreed to the proposal so made by Mr. Gaurav Gupta, learned Senior Standing Counsel for the respondent-Department. He offered that the petitioners namely Sonali Rastogi and Manit Rastogi would deposit Rs.1,25,00,000/- each within a period of ten days, which may be adjusted against the demand, if raised, against the petitioners.
8. In view of the above and considering that some of the petitioners are either senior citizens of more than eighty years of age or children below thirty years of age, we are persuaded to accede to the proposals so made by the learned counsel for the petitioners.
9. The petition is, therefore, allowed by directing as under :
i. The petitioner namely Manit Rastogi (in W.P.(C) 7450/2025) and Sonal Rastogi in (W.P.(C) 7449/2025) shall deposit Rs.1,25,00,000/- each as self-assessment tax/advance tax on or before 15.01.2026.
ii. Upon aforesaid amount being deposited and a copy of the challan produced before the respondent No.1 (Assistant/Deputy Commissioner), entire jewellery, bullion and cash/forex seized (approximately 6.862 Kg gold jewellery & bullion and Rs.40,00,000/- as cash/forex) shall be released within a period of seven days.
10. All the Writ Petitions along with pending applications, stand disposed of, accordingly.
11. Needless to observe that this Court has not recorded any finding or made observation in relation to the merit of the contention of the assessees that the jewellery, bullion and cash/forex are duly explained. The petitioners so also respondent-Department shall be free to take their respective pleas, at appropriate stage.
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