The Assessee was a partnership firm engaged in the business of jewellery. In Nov. 2023, jewellery was seized from Assessee’s employees by Railway Police as they were travelling to Jabalpur allegedly for displaying jewellery to jewellers and booking orders. The seized jewellery was handed over to the Income tax Department and requisitioned under S. 132A. In Dec. 2023, Assessee filed an application under S. 132B before ADIT (Investigation) seeking release of seized jewellery, contending that same constituted its stock-in-trade. Since no decision was taken, the Assessee approached the Madhya Pradesh High Court, which in Feb. 2024 directed the Income tax Department to decide the application within a stipulated time. Thereafter, the said application was transferred to another Assessing Officer, who in May 2024 rejected the application on merits. It was noted that officer who passed impugned order did not hold jurisdiction over Assessee or seized assets at the relevant time and that the order was passed contrary to directions issued by High Court.On another writ, the High Court, in Dec. 2025, held that the order rejecting the Assessee’s application for release of seized jewellery was vitiated for want of jurisdiction and for being in contravention of directions issued by High Court. Since the Income tax Dept stated that Assessee’s case as well as that of the employee is now centralized, the High Court directed that the Assessee’s application be decided afresh on its own merits.