Upcoming Marriage in Family: Delhi HC allows 6.862 kg Seized Gold Jewellery release after Family agrees to Deposit ₹2.5 Cr Advance Tax [Read Order]

In a recent ruling, the Delhi High Court allowed the release of about 6.862 kg of seized gold jewellery and bullion along with cash and foreign currency of around Rs. 40 lakh, after members of a family agreed to deposit Rs. 2.5 crore as advance or self-assessment tax and considering the upcoming wedding in the family.

The case arose from a batch of writ petitions filed by Koshalia Devi Rastogi and her family members, who are regular income tax assessees. The petitions challenged the continued retention of gold jewellery, bullion, and cash seized by the Income Tax Department during a search conducted at their premises between 17 December 2024 and 20 December 2024.

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The petitioners sought release of the seized assets on the ground that proceedings under Section 158BC of the Income Tax Act, 1961 had not been finalized.

The petitioners’ counsel argued that the family members regularly file their income tax returns and pay applicable taxes. They explained that although the Department treated the seized gold jewellery, bullion, and cash as undisclosed income, all the seized items were explained or capable of being explained.

The counsel also pointed out that one of the petitioners was getting married in March 2026 and that the family required the gold jewellery, to which they were emotionally attached.

The petitioners stated that they were willing to furnish security equal to the value of the gold jewellery and cash while seeking release of the seized assets. They argued that even if any tax demand was raised later, it would be much lower than the value of the seized assets.

The Income Tax Department opposed the unconditional release of the seized assets. They argued that the petitioners should be directed to deposit an amount towards the probable tax liability as advance tax or self-assessment tax for the assessment year 2025-26, so that the Revenue’s interest remained safeguarded in case any demand was raised in future.

After some reluctance, counsel for the petitioners agreed to the proposal made by the Department. It was stated that two petitioners, Sonali Rastogi and Manit Rastogi, would deposit Rs. 1.25 crore each within the time allowed by the Court and that the amount could be adjusted against any future tax demand.

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The Division Bench comprising Justice Dinesh Mehta and Justice Vinod Kumar observed that some of the petitioners were senior citizens above eighty years of age and others were young family members below thirty years of age. Taking into account these circumstances and the consent arrived at between the parties, the court accepted the arrangement placed before it.

The court directed Sonali Rastogi and Manit Rastogi to deposit Rs. 1.25 crore each as advance or self-assessment tax on or before 15 January 2026. The court further directed that after the amount was deposited and proof was produced before the assessing officer, the entire seized gold jewellery and bullion weighing about 6.862 kg along with the seized cash and foreign currency should be released within seven days.

The writ petitions were disposed of.

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