The petitioner no 3 was travelling from   Mumbai to Jaipur  he was carrying  Jewellery and diamond  . The Jewellery was sent to Jaipur as stock in trade in the course of business. The Income tax Authorities seized the Jewellery   .  The statement was recorded u/s 132 (4) of the Act  the petitioner stated that it was stock in trade, challans and approval memo was also submitted to the Authorities  . In spite of  producing various documents , the stock in trade was not released . The petitioners  filed writ before the High Court . High Court held that the seizure was illegal  and directed to release the stock in trade . High Court also directed revenue to pay interest of Rs 1 lakh to the petitioners.  

CA No. 6097/ 2020 dt 7-8 2021