Allahabad HC Orders Income Tax Dept to Pay Compensation After Seized Jewellery Stolen from Bank Locker

This article covers a judgment by the Allahabad High Court (AHC) directing the Income Tax Department to compensate a taxpayer whose gold jewellery (valued at roughly ₹94.64 lakh) was seized in a raid, placed in a bank locker, and later stolen. (CAclubindia) The taxpayer had provided valuation and settlement proposals, but due to delay by the department and mis-custody of the locked jewellery, the court found the department responsible for the loss. The AHC ordered verification of valuation by the Income Tax authorities and payment within four weeks, and stipulated 12 % annual penal interest if payment is not made in time. (The Economic Times) The ruling underscores the duty of the tax authority to ensure safe custody of seized assets and provides a precedent for compensation where administrative lapses lead to loss during proceedings. It also signals the judiciary’s expectation of timely relief to taxpayers even in assessment or enforcement proceedings.