The assessee filed a writ petition before the Hon’ble Delhi High Court seeking a direction to the Income-tax Department to release jewellery and bullion seized during the course of a search. The Revenue objected to the maintainability of the writ petition on the ground that the search operation and seizure were conducted by Income-tax authorities situated in the State of Haryana and, therefore, the Delhi High Court lacked territorial jurisdiction to entertain the petition. Accepting the contention of the Revenue, the Hon’ble Delhi High Court dismissed the writ petition holding that it had no justification to entertain or continue proceedings in respect of a search conducted by authorities outside its territorial jurisdiction.

Aggrieved, the assessee filed a Special Leave Petition before the Hon’ble Supreme Court. During the course of hearing, it was brought to the notice of the Court that after filing of the writ petition, the assessee’s case had been centralized and transferred from the Deputy Commissioner of Income Tax, Circle 61(1), Delhi to the Deputy Commissioner of Income Tax, Central Circle-1, Faridabad (Haryana). The Hon’ble Supreme Court declined to entertain the Special Leave Petition and held that the assessee was at liberty to seek an appropriate remedy before the High Court having territorial jurisdiction. Accordingly, the Special Leave Petition filed by the assessee was dismissed.(AY. 2023-24)