Raj Krishan Gupta & Ors Vs Principal Director of Income Tax (Delhi High Court)
Delhi HC Unlocks Truth: Locker Search Upheld, ₹4.6 Cr Bullion & Jewellery Seizure Stays- CBDT Jewellery Limit No Shield: HC Backs IT Dept in Locker Search Case
Delhi High Court dismissed a writ petition challenging the legality of search & seizure conducted u/s 132 on three lockers maintained at South Delhi Vaults, New Delhi. Petitioners, consisting of family members, had contended that the jewellery, bullion & diamonds found during the search were either disclosed assets, ancestral property, or belonged to their daughters, one being a minor & the other residing abroad. They argued that the action of the Dept violated CBDT Instruction No.1916 dated 11.05.1994 which provides immunity from seizure of jewellery to the extent of 500 grams per married lady, 250 grams per unmarried lady & 100 grams per male member, & that the search was a fishing & roving exercise without valid “reasons to believe” as mandated u/s 132.
Revenue countered that summons u/s 131(1A) were issued & statements were recorded, yet the petitioners failed to produce any bills or documentary evidence substantiating the ownership or source of bullion & jewellery. It was highlighted that the petitioners held multiple high-rent lockers despite their financial profile not commensurating with such wealth. Department recorded satisfaction & obtained approval of DGIT (Investigation) before issuing authorisations. It was further argued that CBDT Instruction No.1916 applies only to small quantities of jewellery, not to large holdings of bullion & diamonds worth over ₹4.6 crores seized in the present case.
