Jewellery Recovered From Company's Bank Locker Can't Be Presumed To Belong To Any Director: Punjab & Haryana HC Criticises Seizure By IT Dept
Live LawCalling the action of Income Tax Authorities as "arbitrary, illegal", the Punjab & Haryana High Court has directed it to release the jewellery of a company seized from bank locker during search operation.The Court noted that as per Section 132 Income Tax Act, there is a bar to seize the stock in trade, which is found as a result of search, and the only authority available with the officer. Calling the action of Income Tax Authorities as "arbitrary, illegal", the Punjab & Haryana High Court has directed it to release the jewellery of a company seized from bank locker during search operation. The Court noted that as per Section 132 Income Tax Act, there is a bar to seize the stock in trade, which is found as a result of search, and the only authority available with the officer is to make a note and inventory of such stock in trade of the business. Justice Sanjeev Prakash Sharma and Justice Sanjay Vashisht said, "respondents have acted in an arbitrary, illegal and unjustified manner in seizing the stock in trade of the petitioner company.
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