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| 62 | Voice of CAI. F.No. 286/247/98-IT (Inv.-II) 2 nd Feb.,1999To,All Director Generals of Income tax (Inv.)All Chief Commissioners of Income tax,Sub: Search and Seizure cases – release of seized assets –Instructions reg.Sir,1. Instances have come to the notice of the Board of seizure of assets,which prima facie, appear to have been disclosed in the regularbooks of account maintained by the persons subjected to the searchaction.2. In such cases of seizure of declared assets, the seized assets couldbe released subject of course to recovery action by the Departmentagainst existing arrears.3. There are also instances where jewellery or perishable stocks areseized. The searched parties sometimes request for release ofjewellery on grounds of need for personal use. The perishablestocks again, if not released, could deteriorate in quality leadingto erosion in their value. In such cases, it has been decided that ifan unconditional irrevocable bank guarantee to the full extent ofthe value of the seized assets is given, the assets could be releasedto that extent. The valuation is to be done by the Income-taxDepartment and the guarantee should be clear and unequivocal.4. The bank guarantee should be valid till the relevant assessmentproceedings are complete and taxes are collected. The Departmentshould have the option to enforce the guarantee at any point oftime.5. It will also be ensured that in cases where the seized assets willhave specific evidentiary value in prosecution the assets will not bereleased till the completion of prosecution proceedings.Yours faithfully,Sd/-(Kavita Bhatnagar)Under Secretary to the Govt. of India