Bombay High Court Issues Notice to Income Tax Department Over Seized Ornaments

The Nagpur Bench of the Bombay High Court has issued a notice to the Income Tax Department regarding a petition filed by Chaitanya Kochar, who is seeking the return of gold and silver ornaments that were seized during a search conducted back in 2007. The matter was brought before a Division Bench of Justices Anil L. Pansare and Siddheshwar S. Thombre on September 26, 2025.

In his petition, Kochar contended that officers from the Income Tax Department had conducted a search at his premises in 2007, resulting in the seizure of 4,275.15 grams of gold jewellery, 39,075 grams of silver jewellery, and several documents. Following the search, assessment orders were issued, holding him liable for tax payments. These orders were subsequently challenged before the Commissioner of Income Tax (Appeals) in Nagpur, which dismissed the appeals.

The case was then brought before the Income Tax Appellate Tribunal (ITAT) under Section 253 of the Income Tax Act, 1961. In a significant development, the ITAT quashed the assessment orders in its ruling dated April 28, 2022.

Despite the ITAT's ruling, Kochar asserted before the High Court that the authorities had failed to return the seized jewellery and documents, despite his multiple requests. Arguing that the continued retention of these items was unlawful, he sought judicial intervention.

After considering the submissions, the Court directed the issuance of notice to the respondents, requiring a response within three weeks. The proceedings will now continue with the Income Tax Department required to address the court's queries.

This case highlights a recurring challenge in tax litigation, where taxpayers often face significant delays in the return of seized assets, even after receiving relief through appellate processes. The Bombay High Court's decision is anticipated to tackle this issue and promote adherence to appellate orders.