Punjab and Haryana HC orders release of jewellery seized by IT Department

The Punjab and Haryana High Court criticized the Income Tax Department for unlawfully seizing jewellery from Dillano Luxurious Jewels, a company specializing in the sale of ornaments.

The Court ruled that jewellery stored in a company’s locker cannot be presumed to belong to individual directors. It emphasized that under Section 132(1)(B)(iii) of the Income Tax Act, stock in trade cannot be seized during a search. 

The Court ordered the immediate return of the seized jewellery, deeming the IT Department’s actions arbitrary, illegal and unjustified.