Punjab & Haryana H.C : The order of reassessment as framed by the AO was set aside in appeal, there is no liability existing as on date against the assessee and, therefore, the AO be directed to return the jewellery seized during the course of the search.

Counsel Appeared

Satish Jain, for the Petitioner : R.P. Sawhney with S.K. Sharma, for the Respondents

JUDGMENT

N.K. SODHI, J. :

During the course of a search conducted at the residential and commercial premises of the petitioner on 24th/25th Feb., 1989, jewellery worth Rs. 1,71,570 was seized by the Department.

The value of the jewellery was treated as the income of the assessee and a reassessment was framed by the AO accordingly. Another addition of Rs. 55,897 was made on account of some papers which were found during the course of search. Feeling aggrieved against the order of reassessment, the assessee filed an appeal before the CIT(A), Shimla, which was allowed on 5th March, 1997, and it was held that the jewellery belonged to the ladies of the family which was their Stridhan. As regards the addition of Rs. 55,897 the same was deleted and the order set aside and the case remanded to the AO to re-decide the matter afresh after affording an opportunity of hearing to the petitioner.

The prayer now made in this petition filed under Art. 226 of the Constitution is that since the order of reassessment as framed by the AO was set aside in appeal, there is no liability existing as on date against the assessee and, therefore, the AO be directed to return the jewellery seized during the course of the search.

In the written statement filed on behalf of the Department it is stated that the appeal is pending before the Tribunal and in case it succeeds it will be difficult to recover the said amount from the petitioner-assessee.

Having heard counsel for the parties and after going through their pleadings, we direct the AO to return the jewellery to the petitioner on his furnishing adequate security for its return to his satisfaction. The petitioner will furnish security within a period of one month and the AO after accepting the same will return the jewellery within two weeks thereafter. The writ petition stands disposed of accordingly.

[Citation: 236 ITR 429]