S. 132 : Search and seizure-Seizure of stock in trade-Seizure was held to be illegal-Directed to release the stock in trade and also directed to pay interest of Rs. 1 lakh to the petitioner. [S. 132(4), 132B, Art. 226]

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]