LOKNATH ARORA vs. THE ASSTT. COMMISSIONER OF INCOME TAX (CENTRAL CIRCLE)

Taken on record.

The petitioner has made the following prayers in this writ petition:- “i) To direct the Respondents:- (a) to release the cash and gold goods as desired by the Petitioner for the payment of due tax and interest, as determined by the Respondent No.1, which is mandated by the Provisions of section132B of the Act of 1961. (Uploaded on 26/09/2024 at 05:31:24 PM) (Downloaded on 28/10/2026 at 12:49:16 AM)

However, at the outset, Mr. Shafi Mohammad Chouhan the learned counsel for the petitioner makes a statement in the Court that this writ petition is now confined only to the prayer made at clause i)(d).

Briefly stated, the petitioner has pleaded that he is a regular Income Tax assessee under the Permanent Account Number- AAYPA5789L. In course of the search conducted on 14th October 2021 at his premises, purportedly under section 132 of the Income Tax Act, 1961, gold jewellery and bullions worth Rs.3,13,60,000/- belonging to the petitioner, his wife and daughter-in-law were seized by the search team. His statement was recorded on 14th and 15th October 2021 whereunder he made statements to the effect that the gold bullions worth Rs.49,00,000/-belong to him whereas gold bullions worth Rs.4,90,000/- belong to his wife and worth Rs.2,59,70,000/- belong to his daughter-in-law. He has further pleaded that the statement of his son was also recorded on different dates. The (Uploaded on 26/09/2024 at 05:31:24 PM) (Downloaded on 28/10/2026 at 12:49:16 AM)

The reason why the petitioner has filed this writ petition is that to avoid a declaration as Assessee-in-Default under sub- section 3 of section 140A of the Income Tax Act, he requires funds to meet with the Income Tax liability and therefore he had filed an application under sub-section (1) of section 132B of the Income Tax Act on 13th December 2021 but the same has remained pending. This is the specific stand taken by the petitioner that he wants the Income Tax authority to put on auction sale the gold worth Rs.1,00,00,000/- seized during the search conducted at his premises so as to meet the tax liability. The learned counsel for the petitioner states that under the assessment dated 29th March 2024 the petitioner is liable to pay tax of Rs.3,55,21,165/- out of which the petitioner has made certain payments and is required to make further payment of Rs.2,99,11,033/- for which he has made applications to the Assistant Commissioner of Income Tax (Investigation), Bikaner including the one filed on 13th December 2021. 8. Without prejudice to the rights of the assessee to prosecute the statutory appeal, the cash seized from the house of the assessee in course of the raid conducted on 14th October 2021 shall be adjusted as provided under section 132B of the Income Tax Act, 1961 against the liability assessed against him (vide order dated 29th March 2024) and the gold seized from the house of the assessee may also be put on auction sale, in accordance with law, and the amount so realised can be adjusted against the (Uploaded on 26/09/2024 at 05:31:24 PM) (Downloaded on 28/10/2026 at 12:49:16 AM)