Court :
SC
Brief :
. On a writ petition filed by the
assessee challenging the seizure of certain jewellery and ornaments belonging to
the assessee, the High Court held that the search and seizure were invalid and
illegal. The High Court ordered that interest at the rate of 8% per annum should
be paid on the value of diamonds and jewellery worth Rs. 84.68 lakhs from the
date of seizure till payment.
2. Allowing the departmental
appeal the Supreme Court held as under :
"Without going into the question
as to the payability of interest on the value of goods found by the court to
have been illegally seized, we hold that the appellants are liable to compensate
the respondents at least by way of costs. The loss obviously suffered by the
respondents during the pendency of the proceedings before the High Court was
further aggravated by the delay in complying with the High Court’s decision. In
the circumstances, we direct the appellants to pay a sum of Rs. 75,000/- to the
respondents on account of costs which the respondents will accept in full and
final settlement of the claim towards the quantum of interest under the impugned
order. Such payment is to be made within a period of four weeks. In the event
such payment is not made, this appeal will stand dismissed with
costs."
Reepal
Tralshawala
Chartered
Accountant
Rupesh
Srivastava
e.mail:
rupesh@thetaxcorp.com
PH:
9225908041 (Goa)
9243408041 ( Karnataka
Citation :
Director-General
of Income-tax & Anr. vs. Diamondstar Exports Ltd. & Ors. [293 ITR 438
(SC)]
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