TMI Blog1997 (2) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... direction to return the gold ornaments and other articles seized under exhibit P-2 order. A search was conducted at the business premises of the petitioner on January 6, 1997. It was seen that the firm had been doing unaccounted gold business advancing amounts in respect of gold pledged. The advances so made comes to Rs. 39,56,630. In the absence of satisfactory explanation gold weighing 10,802.300 gms. approximately valued at Rs. 47,53,000 were seized under section 132(1) of the Act. The petitioner requested for the release of the seized articles on furnishing immovable property security along with the valuation report showing the value of the property at Rs. 24,45,000. As there was no response from the Department the original petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pawners' right, held as follows : "While pledging an article with a licensed pawnbroker, the pawner not only parts with the possession of the pledged article in favour of the pawnbroker, but by virtue of such pledge parts with the rights he held to sell the pledged article in the case of default of payment and discharge of the loan or redemption of the article pledged within the time stipulated therefor. Such auction or sale by the pawnbroker does not depend upon any further consent or permission by the pawner." Therefore, the action of the Department in seizing the jewels which represented undisclosed investment cannot be held to be illegal. Chapter XIV-B of the Income-tax Act provides for special procedure for assessment of search c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 62,75,323 --------- There is no serious dispute regarding the value of the gold which comes to Rs. 47,53,000. It is also not seriously disputed that the business of which seizure is taking place was not the subject-matter of assessment and that therefore they are only unaccounted assets. The petitioner would be given sufficient opportunity as per the special procedure set out with reference to assessment of such cases. Taking into account all the facts and circumstances of the case, there will be a conditional order of interim direction. Accordingly, I direct the first respondent to release and hand over the gold ornaments and pledge forms and applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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