HIGH COURT OF JUDICATURE FOR RAJASTHAN

BENCH AT JAIPUR

S.B. Civil Writ Petition No. 6097/2020

1.

Harshvardhan Chhajed Son Of Shri Himmat Singh

Chhajed, Aged About 43 Years, R/o 20, Sunder Nagar,

Malviya Nagar, Jaipur Proprietor Of M/s Maha Pragya

Jewellers Having Address At 2403, Dal Ki Gali, Ghee

Walon Ka Rasta, Johari Bazar, Jaipur.

2.

Siddharth Baid S/o Shri Pratap Mal Baid, Aged About 32

Years, R/o Fw-1150, Bharat Diamond Bourse, Bandra

Kurla Complex, Bandra (E), Mumbai-40051 Proprietor Of

M/s Daha Dimon Having Address At Fw-1150, Bharat

Diamond Bourse, Bandra Kurla Complex, Bandra (E),

Mumbai-40051

3.

Kantivardhan Pradeep Choraria S/o Shri Pradeep

Noratanmal Choraria, Aged About 28 Years, R/o A-602,

Om Vihar, Kasturi Garden, Amritvani Lane, Behind Maxus

Mall, Bhayander West, Mumbai-401101.

----Petitioners

Versus

1.

Director General Of Income Tax (Investigation), New

Central Revenue Building, Statue Circle, Bhagwan Das

Road, C-Scheme, Jaipur.

2.

Director Of Income Tax (Investigation), New Central

Revenue Building, Statue Circle, Bhagwan Das Road, C-

Scheme, Jaipur.

3.

Assistant Director Of Income Tax (Investigation-1), New

Central Revenue Building, Statue Circle, Bhagwan Das

Road, C-Scheme, Jaipur.

----Respondents

For Petitioner(s)

:

Mr. Siddharth Ranka

Mr. Muzaffar Iqbal

Mr. Saurav Harsh

For Respondent(s)

:

Mr. Siddharth Bapna on behalf of

Mr. Anil Mehta, AAG

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[CW-6097/2020]

HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA

Order

Reserved on: 25/08/2021

Pronounced on

: 07/09/2021

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 Pragya Jewellers had

been issued on 24.02.2020 and it stated that the goods are being

sent to Jaipur.

5.

A letter was sent by the petitioner No.1 on 26.02.2020 to

release the stock attached and explained the stock details,

purchase details, sales details, challans issued, stock register,

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[CW-6097/2020]

audit reports, income tax return, air ticket bills and certificate

from Charted Accountants etc. and justification of goods found

from the possession of petitioner No.3 were also explained.

Similarly, petitioner No.2 also sent a letter on 18.03.2020.

Another application was submitted on 22.05.2020 wherein

additionally other documents including PAN Card, GST Registration

Certificate, Income Tax Return for the year 2018-19, GST return

for the year 2019-20 and Bank statements from January 2020 to

March 2020 of M/s Maha Pragya Jewellers were also submitted. It

was also informed that some stock of the petitioner/s was left with

his brother-in-law Siddharth Baid at Mumbai who was engaged in

the same business while travelling from Jaipur to Kolkata and

Kolkata to Mumbai. The challan relating to th