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SANJEEV PRAKASH SHARMA
Harshvardhan Chhajed – Appellant
Versus
Director General of Income Tax (Investigation) – Respondent
JUDGMENT
1. The petitioners by way of this writ petition have prayed that the respondents be directed to release the attached stock-in-hand belonging to petitioner Nos.1 and 2 respectively and quash and set aside the wrongful action taken against the petitioners.
2. Brief facts to be noticed are that on 24.02.2020 the petitioner No.3-Kantivardhan Pradeep Choraria was intercepted and searched at Jaipur Airport during his journey from Mumbai to Jaipur while he was carrying jewellery and diamonds, by the Income Tax Authorities. The said jewellery found in his possession was seized in terms of Section 132 of the Income Tax Act, 1961 (hereinafter referred to as "the Act of 1961").
3. The petitioner No.1 and 2 who are the Proprietor of M/s Daha Dimon and M/s Maha Pragya Jewellers and are brother-in-law have submitted that apart from jewellery two challans were seized which had been issued by M/s Maha Pragya Jewellers and M/s Daha Dimon in relation to jewellery and the entire jewellery was part of stock-in-trade and stock-in-hand with petitioner No.3 who was employer of petitioner No.2.
4. Learned counsel for the petitioners submits that the challan bearing No.1050 in the name of M/s Maha Pra
Seizure of stock-in-trade under the Income Tax Act requires clear evidence of undisclosed income; mere suspicion is insufficient.
Seizure under the Income Tax Act should be conducted with due care and caution, and should not be based solely on suspicion. The seizure of goods should be justified and in accordance with the provis....
The main legal point established in the judgment is the requirement to establish prima facie evidence that seized goods are part of the stock-in-trade, as per Section 132(1)(iii) of the Income Tax Ac....
The main legal point established in the judgment is that the gold bullion seized during the search was stock-in-trade and duly accounted in the books of accounts, as per the relevant provisions of FE....
Seizure of goods must adhere to procedural safeguards unless linked to electoral misconduct; ownership must be substantively established before neutral parties.
The statutory provision of Section 132B of the Income Tax Act is mandatory, and the time frame provided under Sections 132A and 132B is crucial in determining the retention and release of seized asse....
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