Section 132 :Jewellery can be released after furnishing bank guarantee

Jewellery can be released after furnishing bank guarantee even if its actual ownership is to be determined

Seized jewellery could be released on furnishing of bank guarantee by Karta of HUFs even if it was not cleared whether jewellery belonged to HUFs or Karta

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[2015] 57 taxmann.com 5 (Bombay)

HIGH COURT OF BOMBAY

M.N. Navale (Bigger HUF)

v.

Somnath M. Wajale, Deputy Commissioner of Income-tax, Central Circle -2 (2), Pune

Section 132 of the Income-tax Act, 1961 - Search and seizure - General (Release of seized assets) - Assessment years 1999-2000 to 2009-10 - In course of search revenue seized jewellery from a premises a larger HUF, a smaller HUF and Karta was present at said premises - Whether where issue of ownership of seized jewellery was a matter which was pending for final adjudication, release of seized jewellery on furnishing of a bank guarantee provided by Karta would not be prejudicial to interest of revenue - Held, yes [Para 13] [In favour of assessee]

Circulars and Notifications : CBDT's Circular, dated 21-1-2009