Miraj Digvijay Shah Vs ACIT (Calcutta High Court)
Calcutta High Court held that in a proceeding under Section 263 of the Income Tax Act of 1961, the PCIT is empowered to make such inquiry as he deems necessary and inspection of seized assets may very well form part of such inquiry. Accordingly, notice of inspection is duly sustainable and hence writ petition stands dismissed.
Facts- A search operation under Section 132 of the said Act of 1961 was conducted at the residence and office of the petitioner as well as at the bank lockers of the petitioner and the petitioner’s family members. In course of the search and seizure operation, the entire jewellery/bullion were seized upon being inspected, measured, serially numbered and valued by the valuers approved by the Income Tax Department in accordance with the prescribed search and seizure procedure and the Search and Seizure Manual issued by the Central Board of Direct Taxes.
This writ petition assails three notices dated October 24, 2025, October 29, 2025 and November 07, 2025 whereby the respondent revenue authorities have intimated the petitioner about their intent to inspect the jewellery, gold bars etc., seized during a search and seizure operation conducted on June 21, 2022 under Section 132 of the Income Tax Act, 1961.
