Proposal for release of valuables other than cash seized during the course of search -against Bank Guarantee - Income Tax - F.No. 286/97/2003-IT(Inv.II)

F.No. 286/97/2003-IT(Inv.II) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, the 3rd March, 2004 To The Director General of Income Tax (Inv.), Lucknow Sub : Proposal for release of valuables other than cash seized during the course of search - against Bank Guarantee - regarding. Sir, I am directed to refer to your letter F.No. DGIT(Inv.)/W/LKO/s-15/S S/03-4/1164 dated 10.2.2004 on the above subject. Instruction dated 2nd February, 1999, (F.No. 286/247/98-IT(Inv.II) provides to release seized jewellery against unconditional and irrevocable Bank Guarantee, subject to following conditions: (i) Seized assets have no specific evidentiary value for purpose of prosecution. (ii) Bank Guarantee should be valid till the assessment proceedings are complete and taxes are collected. Department should have the option to enforce the guarantee at any period of time. (iii) Bank Guarantee should be unconditional and irrevocable to the full extent of the value of seized assets. The valuation is to be done by the Department and the guarantee should be clear and unequivocal. While deciding the release of seized jewellery against bank guarantee, it should be ensured that above conditions are fulfilled and other considerations as to whether an assessee seeks release of seized jewellery for personal use or for the purpose of liquidity by sale of seized jewellery are not very relevant. Further, the seized jewellery can be released against bank guarantee subject to the above conditions, even prior to filing of returns. Yours faithfully, (SHARAT CHANDRA) Director (Inv. II lll)