TMI Blog2004 (1) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... ver the jewellery to the petitioner in terms of the provisions of sub-section (3) of section 132B - - - - - Dated:- 23-1-2004 - Judge(s) : N. K. SUD., J. S. NARANG. JUDGMENT The judgment of the court was delivered by N. K. SUD J. - This writ petition has been filed for issuance of a writ in the nature of mandamus directing the respondents to release the jewellery which had been seized during the search of the two lockers of the petitioner on September 17, 1996 and September 24, 1996. The residential and business premises of the petitioner were raided on September 11, 1996. His locker No.39 with the Canara Bank, Dalhousie Road, Pathankot, was searched on September 17, 1996, and a panchnama was prepared, a copy of which has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 63. This amount was paid by the petitioner as under: Rs. 3,85,000 on January 31, 2000. Rs. 3,38,663 on February 29, 2000. Since, there was delay in deposit of tax on the part of the petitioner, he was also required to deposit interest under section 220(2) of the Act which was determined at Rs. 45,582. The said amount was also deposited on February 29, 2000. Since the entire demand created in respect of the block assessment stood fully paid on February 29, 2000, and there was no other demand pending against him, the petitioner filed an application before respondent No.1 on January 2,2002, for release of the jewellery, which had been seized from his lockers. Receiving no response, another application dated September 4, 2002, with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e payment. Thus, it is contended that on this ground also, the jewellery recovered from the lockers of the petitioner could not be released. It is, however, admitted that the entire demand in the case of the petitioner stands paid and there is no amount outstanding against him. The petitioner filed a rejoinder in which the provisions of section 132B of the Act have been relied upon to show that the Department could not retain the assets after the liability referred to in clause (i) of sub-section (1) of section 132B of the Act has been discharged. Reliance was also placed on the judgment of the apex court in J.R. Malhotra v. Addl. Sessions Judge, AIR 1976 SC 219, to contend that the Revenue could not retain the assets on the plea that som ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was no response to the various applications made by the petitioner for release of jewellery. We have heard the counsel for the parties and perused the relevant material on record. Section 132B of the Act deals with the application of seized or requisitioned assets. It reads as under: "132B. (1) The assets seized under section 132 or requisitioned under section 132A may be dealt with in the following manner, namely: - (i) the amount of any existing liability under this Act, the Wealth-tax Act, 1957 (27 of 1957), the Expenditure-tax Act, 1987 (35 of 1987), the Gift-tax Act, 1958 (18 of 1958) and the Interest-tax Act, 1974 (45 of 1974), and the amount of the liability determined on completion of the assessment under section 153A an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may apply such money in the discharge of the liabilities referred to in clause (i) and the assessee shall be discharged of such liability to the extent of the money so applied; (iii) the assets other than money may also be applied for the discharge of any such liability referred to in clause (i) as remains undischarged and for this purpose such assets shall be deemed to be under distraint as if such distraint was effected by the Assessing Officer or, as the case may be, the Tax Recovery Officer under authorisation from the Chief Commissioner of Income-tax or Commissioner of Income-tax under sub-section (5) of section 226 and the Assessing Officer or, as the case may be, the Tax Recovery Officer may recover the amount of such liabilities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... signed to it in clause (a) of section 158B; (ii) 'execution of an authorisation for search or requisition' shall have the same meaning as assigned to it in Explanation 2 to section 158BE." Sub-section (3) of section 132B of the Act clearly indicates that the seized assets or proceeds thereof which remain after the liabilities referred to in clause (i) of sub-section (1) have been discharged, have to be forthwith made over or paid to the persons from whose custody the assets were seized. It is the admitted case of the parties that there are no existing liabilities in respect of any kind of demand referred to in clause (i) of sub-section (1) of section 132B of the Act. It is also not in dispute that the jewellery was recovered and seized ..... X X X X Extracts X X X X X X X X Extracts X X X X
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