Bombay High Court
Echjay Industries Pvt. Ltd. And 7 Ors vs Rajendra And 2 Ors on 4 September, 2019
Author: S.J.Kathawalla
Bench: Akil Kureshi, S.J.Kathawalla
40-osnmw-481-16.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
NOTICE OF MOTION NO. 481 OF 2016
IN
WRIT PETITION NO. 122 OF 2009
Echjay Industries Pvt. Ltd. and ors. ... Applicants
(org.Petitioners)
IN THE MATTER OF
Echjay Industries Pvt. Ltd. and ors. ... Petitioners
V/s.
Mr. Rajendra and ors. ... Respondents
----------------
Mr. P. Pardiwala, Sr. Advocate a/w. Mr. Aditya Mehta and
Mr.Bhavin Shah i/b Rashmikant and Partners for the
Applicants/org.Petitioners.
Mr. P.C. Chhotaray for the Respondents.
----------------
CORAM : AKIL KURESHI &
S.J.KATHAWALLA, JJ.
DATE : 4th SEPTEMBER, 2019.
P.C. 1] This Motion is taken out by the original petitioners. They seek release of seized ornaments and jewellery by the department during search and seizure action conducted at the residential premises on 9.7.2008. During the course of hearing of this Motion, we had obtained the preparedness of petitioners to provide bank guarantee to the extent of current valuation of such ornaments and jewellery. Accordingly, an order was Dinesh Sherla 1/4 ::: Uploaded on - 05/09/2019 ::: Downloaded on - 05/09/2019 23:46:58 ::: 40-osnmw-481-16.doc passed on 22.07.2019, we had requested the Principal Commissioner of Income Tax, Central - 4 to appoint a Departmental Valuer to present his valuation report on the current valuation of the said seized assets. Along with the affidavit dated 13.8.2019 filed by the Deputy Commissioner of Income Tax, a copy of the report dated 6.8.2019 is produced. This report is made by the Government Approved Valuer so appointed by the Principal Commissioner. As per this report, the total value of the said assets come to Rs.2,19,34,221.30. In our opinion, after securing department's interest to the extent of such valuation, pending the petition such assets should be released.
2] Before issuing final directions, a few peripheral issues may be sorted out. As pointed out by learned counsel for the department, these valuables were seized under panchanama, which shows that the seizure was from petitioner Nos.2 and 4. Counsel for the petitioners submitted that the ornaments belong to different family members and such stand is adopted by the petitioners in the assessment proceedings. Under the circumstances, we would allow petitioner Nos.2 and 4 to apply Dinesh Sherla 2/4 ::: Uploaded on - 05/09/2019 ::: Downloaded on - 05/09/2019 23:46:58 ::: 40-osnmw-481-16.doc for release of jewellery and ornaments. At the same time, to protect the department from any claim in future by any other persons even if it happens to be members of the same family, we would require these petitioners to file an Indemnity bond indemnifying the department against any such claim. 3] Under the circumstances, the Motion is disposed of with the following directions:
(i) Petitioner Nos.2 and 4 herein shall apply to the Principal Commissioner of Income Tax, Central - 4 for release of the seized ornaments and jewellery. For the purpose of such application, even though they may be treated as owners, this would not prejudice the contentions of these petitioners or any of the assessees taking appropriate stand on the question of ownership of ornaments during assessment;
(ii) Any of the petitioners shall provide an unconditional bank guarantee to the tune of Rs.2,19,34,221.30 in favour of the department of any nationalised bank providing that in case of the department invoking the bank guarantee Dinesh Sherla 3/4 ::: Uploaded on - 05/09/2019 ::: Downloaded on - 05/09/2019 23:46:58 ::: 40-osnmw-481-16.doc upon tax liability of the petitioners or any of them crystalising subject to the assessees' right of appeal and interim protection pending such appeal, such sum shall be transferred in favour of the department forthwith;
(iii) Petitioner Nos.2 and 4 shall file an Indemnity Bond before the Commissioner indemnifying the department against any claim over said jewellery and ornaments arising from any other persons, even if it happens to be family members in future;
(iv) Subject to these conditions being fulfilled, the jewellery and ornaments will be released in favour of petitioner Nos.2 and 4 within 15 days of filing of application and completing these requirements.
4] Notice of Motion is disposed of with aforesaid directions.
(S. J. KATHAWALLA, J.) (AKIL KURESHI, J.) Dinesh Sherla 4/4 ::: Uploaded on - 05/09/2019 ::: Downloaded on - 05/09/2019 23:46:58 :::