Search and Seizure cases- release of seized assets - Income Tax - F. No. 286/247/98-lT(Inv. II)

F. No. 286/247/98-lT(Inv. II) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Date of Issue : 02.02.1999 To All Director Generals of Income-Tax (lnv.) All Chief Commissioners of Income-Tax Sub : Search and Seizure cases- release of seized assets Sir, Instances have come to the notice of the Board of seizure of assets, which prima facie, appear to have been disclosed in the regular books of accounts maintained by the persons subjected to the searches. 1. In such cases of seizure of declared assets, the seized assets could be released subject, of course, to recovery action by the Department against existing arrears. 2. There are also instances where jewellery or perishable stocks are seized. The searched parties sometimes request for release of jewellery on grounds of need for personal use. The perishable stocks again, if not released, could deteriorate in quality leading to erosion in their value. In such cases, it has been decided that if an unconditional irrevocable bank guarantee to the full extent of the value of the seized assets is given, the assets could be released to that extent. The valuation is to be done by the Income-tax Department and the guarantee should be clear and unequivocal. 3. The bank guarantee should be valid till the relevant assessment proceedings are complete and taxes are collected. The Department should have the option to enforce the guarantee at any point of time. 4. It will also be ensured that in cases where the seized assets will have specific evidentiary value in prosecution, the assets will not be released till the completion of prosecution proceedings. Yours faithfully, Sd/ Kavita Bhatnagar