ASHA DEVI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Some jewellery valued at Rs. 7,41,836/- belonging to the Petitioners were seized by the Respondents. According to the Petitioners the present value of the jewellery is about Rs.16 lacs. Be that as it may, block assessment proceedings were initiated against the Petitioners and the admitted position is that whatever demands were raised in terms of the block assessment, the same were paid and all the liabilities discharged. The grievance of the Petitioners is that notwithstanding this, the Respondents have retained the jewellery belonging to them.

(2.) Notice was issued by this Court and in response thereto the Respondents have filed an affidavit in which it is stated that it is difficult to distinguish the jewellery belonging to Petitioner No.1(wife) as against the jewellery belonging to Petitioner No.2 (husband). The additional reasons for retaining the jewellery is that an appeal under Section 260A of the Income Tax Act, 1961 has been filed in respect of block assessment relating to Petitioner No.2.

(3.) Learned counsel for the Petitioners has drawn our attention to Section 132 B(3) of the Income Tax Act, 1961 which reads as follows:-