Income tax department
When the Income Tax Department raided a person’s house, they seized gold jewelery worth about 90 lakh rupees. After this, these jewelery were kept under the security of the bank. But the surprising thing happened that the seized jewelery was stolen. This case was already going on in court.
After this, a person troubled by this incident demanded compensation against Union Bank of India, Income Tax Department and Bank Branch Manager in Allahabad High Court. The person said that he has suffered heavy losses due to the bank and income tax department. He sought about 94 lakh rupees compensation with 9% annual interest from 30 July 2025 to payment.
What did the court decide
The Allahabad High Court gave an important verdict in this case on 25 September 2025. The court found that the Income Tax Officers are very delayed in this case. The petitioner should have returned some amount in 2023 itself. However, till now the person has not received any amount of seized jewelery.
The court clearly said that the person should not worry whether the compensation will come from the bank or from the Income Tax Department. Because gold was seized by the Income Tax authorities and it was their responsibility to handle it. Therefore, if the jewelery is stolen then it will be considered their responsibility.
Income tax department will have to pay on time
The High Court ordered that the Income Tax officials should pay the entire amount within four weeks. Also, if the payment is not made within the deadline, then the officers will have to pay a penalty interest of 12%, which will be applicable from the seizure date of jewelery.
The court also said that the Income Tax Officers can later recover this amount from the bank, but the entire responsibility to compensate for the loss is his own. This decision brought a lot of relief to the person and this example was also made that responsibility can be fixed for the negligence of government departments.