Search and seizure

The material on the basis of which the warrant of authorisation under s 132 was issued and the search and seizure operations were carried out, should be disclosed to the assessee unless privilege is claimed, as held by AllHC in Dr Roop v CIT, Meerut — In favour of: The assessee (partly).

Where the major portion of the quantum has been decided by the Tribunal against the assessee, the revenue cannot be allowed to retain the seized assets on the ground that the department does not have the power to divide the assets in the proportion of the ITAT order and also that the department is filing an appeal against the ITAT order for the part relief granted to the assessee.

In the instant case, the Court has also directed that in case the petitioner furnishes the security of Rs 15 lakhs, which will be other than a cash and bank guarantee, the entire articles, including hard disk, documents, jewellery, cash and FDRs seized and lying in the custody of the Income Tax Department shall be released within 15 days from the date the security is furnished to the satisfaction of the AO.

Decided on: 12 August 2011.