While expressing anguish over the delayed tactics played by the Income Tax Authorities in returning the loss accrued to an individual for loss of his seized jewellery, the Allahabad High Court clarified that when the jewellery has been seized by the IT Authorities, the loss of jewellery would amount to loss by the IT Authorities, and accordingly, payment of the said jewellery has to be made by the IT Authorities.
The Court therefore directed the Income Tax Authorities to look into the valuation done by the petitioner, and upon verification of the said valuation, make payment of the said amount within a period of four weeks. The Court also asserted that in case the petitioner was not compensated within the stipulated period, then the IT Authorities shall be liable to pay penal interest of 12% on the valuation of the Jewellery starting from the date of seizure of the said jewellery.
The Division Bench comprising Justice Praveen Kumar Giri and Justice Shekhar B. Saraf observed that the petitioner is entitled to the loss of his jewellery seized by the Income Tax Authorities, and he is not concerned with whether the money is paid by the respondent Bank or by the Income Tax Authorities.
The Bench noted that the Income Tax Authorities are delaying the entire process, and failed to return the money to the petitioner in the year 2023 itself, when the petitioner had agreed upon the settled amount of Rs. 41.52 lacs.
The dispute in this case is related to the compensation of Rs. 94.64 lacs along with interest at 9% per annum until realisation of said amount from the Department, as well as exemplary cost and further compensation for the mental agony, harassment, and financial distress caused to the petitioner due to the respondent Department’s negligence and mala fide conduct.
Appearances:
Advocate Amit Singh, for the Petitioner/ Taxpayer
Advocates Ashutosh Mishra, Gaurav Mahajan, Naveen Chandra Gupta, Satish Chaturvedi, and Shalini Goel, for the Respondent/ Revenue
