Quick Summary
The Allahabad High Court has directed the Income Tax Department to compensate a taxpayer whose seized gold jewellery worth over Rs 90 lakh was stolen from a bank locker where it had been stored for safekeeping. According to a report, the case arose after income tax officials, during a raid on Mr. J
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FAQ :
The High Court ordered the Income Tax Department to compensate a taxpayer for gold jewellery worth over £90 lakh that was stolen from a bank locker after being seized.
The jewellery was seized by income tax officials during a raid on Mr. Jain's premises because there was a lack of ownership documentation.
The court held that the Income Tax Department bears the ultimate responsibility for the loss of the jewellery, even though the theft occurred while it was in a bank's custody.
The Income Tax Department must process the compensation payment within four weeks of verifying the petitioner's submitted valuation.
If the amount is not settled within the stipulated time, the Income Tax Department will be liable to pay penal interest at 12% per annum on the valuation of the jewellery, starting from the date of seizure.
Yes, the High Court granted the Income Tax Department the liberty to recover the compensated amount from the respondent bank in accordance with the law.
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