Stock-in-trade seized must be released within 120 days: Delhi HC

Khem Chand Mukim Vs Pr. Director of Income Tax (Delhi High Court) Conclusion: Seized stock-in-trade under Section 132 within the custody of the Income Tax authority must be released within 120 days. Since the action of Officer to seize jewellery without pre-existing and pre-recorded good reasons to believe was found to be grossly arbitrary, and the entire action was vitiated, in order to discourage the Officer from resorting to unwarranted action of search, Officer must bear the costs of Rs.50,000/- payable to Delhi Legal Service Authority. Held: Assessee was in the business of trading in jewe...