Bombay HC issues Notice to Income Tax Department on Delay in Return of Gold and Silver Ornaments Seized in 2007 [Read Order]

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

The petitioner contended that officers of the Income Tax Department had conducted a search at his premises in 2007 and seized 4,275.15 grams of gold jewellery, 39,075 grams of silver jewellery, and certain documents. Pursuant to the search, assessment orders were passed holding the petitioner liable to pay tax.

These orders were challenged before the Commissioner of Income Tax(Appeals), Nagpur, who dismissed the appeals. The assessee then approached the Income Tax Appellate Tribunal (ITAT) under Section 253 of the Income Tax Act, 1961. By its order dated April 28, 2022, the ITAT quashed the assessment orders.

The petitioner submitted before the High Court that despite the ITAT order, the authorities have not returned the seized jewellery and documents, despite repeated requests. Arguing that the continued retention was unlawful, Kochar sought judicial intervention.

After hearing the submissions, the Court directed issuance of notice to the respondents, returnable within three weeks. The matter will now proceed with responses from the Income Tax Department.

The case points towards a recurring issue in tax litigation where, even after appellate relief, taxpayers face difficulties in obtaining timely return of seized assets. The Bombay High Court’s decision is expected to address this delay and ensure compliance with appellate orders.

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