In a writ petition filed before the Delhi High Court against the Assistant Commissioner of Income Tax for not releasing the petitioner’s cash and jewellery seized in 2010, a Division Bench of Justice Dinesh Mehta and Justice Rajneesh Kumar Gupta directed the appearance of the Assessing Officer on the next date to explain the same.
The petitioner submitted that even though no demand was due against him, an amount of Rs. 32,50,000/- in cash and jewellery worth Rs. 23,16,146/-, seized on 17-09-2010 were still lying retained by the Income Tax Department for no specific reason. It was mentioned that the Assessing Officer, who by an assessment order dated 28-03-2013 had adjusted a sum of Rs. 22,53,850/- against the petitioner’s demand of Assessment Year 2011-12, was now asking the petitioner to deposit the demand with applicable up-to-date interest from the date of assessment order at 12% per annum, after which he would refund the amount of Rs. 32,50,000/- along with 6% interest.
It was contended that the petitioner received a communication on 08-08-2018 requiring him to furnish an indemnity bond, which he did, but even then he neither received the seized assets nor heard back from the Department.
The Court observed that such an approach by the Department and officers reflected an attitude of high handedness as well as red tapism. It was said that in the present era when one expects honesty and uprightness from taxpayers, the least expected from the officers is that they do what is enjoined upon them to do, in a timely manner.
Directing the AO to be present on the next date for explaining why the needful had not been done for the last 13 years, the Court directed the matter to be listed on 04-08-2026.
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