Sanjeet Singh and others Vs Principal Director of Income Tax (Investigation) (Punjab and Haryana High Court)
The petition was filed seeking release of jewellery seized by the Income Tax authorities during a search conducted on 03.03.2022 at the residential premises of petitioner No.1. The petitioners contended that continued withholding of the jewellery was arbitrary and contrary to the CBDT circular dated 16.10.2023 governing release of seized assets.
During the search, jewellery was seized from the residence and bank lockers of petitioner No.1, and separate panchnamas were prepared. The petitioners stated that 901.030 grams of the seized jewellery belonged to petitioner Nos. 3 and 4, while the remaining jewellery belonged to petitioner Nos. 1 and 2 as wedding jewellery, inheritance, gifts, or purchases.
In the assessment order dated 28.03.2024, the claim regarding 901.030 grams belonging to petitioner Nos. 3 and 4 was accepted, as it had been declared earlier in wealth tax returns. However, the remaining jewellery was treated as undisclosed and added to the income of petitioner No.1. An appeal against this assessment remained pending.
Petitioner Nos. 3 and 4 sought release of their jewellery, citing prior declaration and recognition in earlier assessment proceedings. Petitioner No.1 also made multiple representations seeking release of the remaining jewellery. The authorities directed compliance with the CBDT circular dated 16.10.2023, which requires acceptance of ownership and valuation, revaluation by an approved valuer, and furnishing of a bank guarantee equivalent to present market value.
