- 1 - HC-KAR NC: 2025:KHC-D:9143 CRL.P No.100679 of 2020 C/W CRL.P No.100415 of 2020 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 24TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE R.DEVDAS CRIMINAL PETITION NO.100679 OF 2020 (482(CR.PC)/528(BNSS)) C/W CRIMINAL PETITION NO.100415 OF 2020 (482(CR.PC)/528(BNSS)) IN CRIMINAL PETITION NO.100679 OF 2020: BETWEEN: THE ADDITIONAL DIRECTOR OF INCOME TAX, (INV), UNIT-II NAVANAGAR, HUBBALLI, DIST: DHARWAD. …PETITIONER (BY SRI. THIRUMALESH M., ADVOCATE) AND: 1. PK JEWELLERS PVT. LTD., REPRESENTED BY ITS DIRECTOR RAHUL S/O PRAKASH KOTHARI, AGE: 36 YEARS, OCC: BUSINESS, R/O: OSIA PARADISE-1, DAWOOD BAUG ROAD, ANDHERI (WEST), MUMBAI-400058. 2. THE STATE OF KARNATAKA THROUGH PSI, ALNAVAR PS, R/BY ADDL. S.P.P. HIGH COURT OF KARNATAKA DHARWAD BENCH, DHARWAD. …RESPONDENTS (BY SRI. BHARAT BHAGWAN RAICHANDANI, ADVOCATE FOR SRI. S.G. NANDOOR, ADVOCATE FOR R1; SRI. RAMESH B. CHIGARI, HCGP FOR R2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C. PRAYING TO SET ASIDE THE ORDER PASSED BY THE JUDGE, IV ADDL. DISTRICT AND SESSIONS JUDGE, DHARWAD IN CRIMINAL REVISION PETITION NO.99/2018 DATED 21.08.2018, AND SET ASIDE THE ORDER IN CC NO.715/2018 PASSED BY THE III ADDL. CIVIL JUDGE AND JMFC, DHARWAD DATED 21.07.2018 AND RELEASE THE SEIZED GOLD ORNAMENTS IN P.F.NO.16/2018 DATED 09.04.2018 FOR INTERIM CUSTODY TO RESPONDENT/APPLICANT NO.1 & ETC. MOHANKUMAR B SHELAR Digitally signed by MOHANKUMAR B SHELAR Location: High Court of Karnataka, Dharwad Bench Date: 2025.07.26 10:34:51 +0530 - 2 - HC-KAR NC: 2025:KHC-D:9143 CRL.P No.100679 of 2020 C/W CRL.P No.100415 of 2020 IN CRIMINAL PETITION NO.100415 OF 2020: BETWEEN: THE ADDITIONAL DIRECTOR OF INCOME TAX, (INV), UNIT-II NAVANAGAR, HUBBALLI, DIST: DHARWAD-580020. …PETITIONER (BY SRI. THIRUMALESH M., ADVOCATE) AND: 1. PK JEWELLERS PVT. LTD., REPRESENTED BY ITS DIRECTOR RAHUL S/O PRAKASH KOTHARI, AGE: 36 YEARS, OCC: BUSINESS, R/O: OSIA PARADISE-1, DAWOOD BAUG ROAD, ANDHERI (WEST), MUMBAI-400058. 2. THE STATE OF KARNATAKA THROUGH PSI, ALNAVAR PS, DHARWAD RURALL CIRCLE, DHARWAD. THROUGH R/BY STATE PUBLIC PROSECUTOR HIGH COURT OF KARNATAKA DHARWAD-580011. …RESPONDENTS (BY SRI. BHARAT BHAGWAN RAICHANDANI, ADVOCATE FOR SRI. S.G. NANDOOR, ADVOCATE FOR R1; SRI. RAMESH B. CHIGARI, HCGP FOR R2) THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER PASSED BY THE LEARNED JUDGE, IV ADDL. DISTRICT AND SESSIONS JUDGE, DHARWAD IN CRIMINAL REVISION PETITION NO.121/2018 DATED 11/12/2018, WHEREBY DISMISSING THE CRIMINAL REVISION PETITION FILED U/S 397 OF CR.P.C. AND CONSEQUENTLY ALLOW THE CRIMINAL PETITION FILED BY THE PETITIONER FOR RELEASE OF GOLD ORNAMENTS SEEKING ITS CUSTODY IN SO FOR AS PETITIONER & ETC. THESE CRIMINAL PETITIONS COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:9143 CRL.P No.100679 of 2020 C/W CRL.P No.100415 of 2020 CORAM: THE HON'BLE MR. JUSTICE R.DEVDAS COMMON ORAL ORDER (PER: THE HON'BLE MR. JUSTICE R.DEVDAS) These two criminal petitions are filed at the hands of the Additional Director of Income Tax (INV), Unit-2, Navanagar, Hubballi, Dharwad District, being aggrieved of three orders arising out of petitions filed at the hands of the private respondents herein, namely, P.K. Jewellers Private Limited. Therefore both these petitions are clubbed, heard together and are being disposed of by this common order. 2. The genesis of the dispute is that a complaint was lodged against two accused persons alleging that on 09.04.2018, at about 12.30 p.m., near Alnavar- Kadabagatti cross check post, the accused persons were carrying gold ornaments worth Rs.1,70,80,000/- in a car bearing No. GA-07-L-2883 from Goa to Hubballi during the period when the Code of Conduct was in operation in view of the State Assembly Elections. On verification it was - 4 - HC-KAR NC: 2025:KHC-D:9143 CRL.P No.100679 of 2020 C/W CRL.P No.100415 of 2020 found that the persons carrying the gold ornaments did not have proper documents to show that such ornaments belonged to them and it was alleged that they were carrying the gold ornaments for distribution to the voters. Based on the said fact Alnavar Police registered a case in Crime No. 54/2018 for offence punishable under Section 98 of the Karnataka Police Act read with Sec. 171(c) of IPC and submitted Property Form No. 16/2018 regarding seizure of gold ornaments and other vehicle before the learned III Addl. Civil Judge & J.M.F.C, Dharwad. The private respondents herein who claimed to be owners of the gold ornaments appeared before the learned Magistrate and obtained bail. Thereafter final report was filed by the Alnavar Police in C.C. No. 715/2018. 3. In the meanwhile the Income Tax Department, more particularly the petitioner herein, in whose jurisdiction the crime was detected, initiated proceedings under the Income Tax Act, 1961 and recorded the statements of accused Nos.1 and 2. Information was also given to the - 5 - HC-KAR NC: 2025:KHC-D:9143 CRL.P No.100679 of 2020 C/W CRL.P No.100415 of 2020 Income Tax Department at Mumbai which is the jurisdictional circle office of the private respondents herein. Enquiry was conducted by the officials of the Department at Mumbai in the office of the private respondents herein. 4. The petitioners herein filed an application before the learned Magistrate seeking for custody of the gold ornaments which were seized by Alnavar Police. The said application was rejected by the learned Magistrate on 21.07.2018. At the same point of time the private respondents had also filed an application seeking release of the gold ornaments and the said application was also rejected by the learned Magistrate by a common order dated 21.07.2018. Both the parties herein preferred Criminal Revision Petition before the 4th Addl. Dist. & Sessions Judge, Dharwad. The learned District & Sessions Judge allowed the application filed by the private respondents herein and rejected the application filed by the petitioners herein. The petitioners are therefore - 6 - HC-KAR NC: 2025:KHC-D:9143 CRL.P No.100679 of 2020 C/W CRL.P No.100415 of 2020 before this Court challenging both the orders. It is also brought to the notice of this Court that the private respondents herein filed one more Criminal Revision Petition No. 124/2018 aggrieved by two conditions imposed in Criminal Revision Petition No. 99/2018 dated 21.08.2018. The learned District & Sessions Judge passed an order on 05.01.2019 in C.R.P. No. 124/2018 relaxing the conditions No. 5 and 6 which were imposed earlier. That order is also in question in these petitions. 5. Learned counsel for the private respondent submits that these petitions may not survive for consideration in view of the subsequent developments. It is submitted that the private respondents herein have filed Income Tax Returns for the relevant financial year 2018-19 and in the said Income Tax Returns the private respondents have claimed ownership assessed the tax payable in respect of the gold jewellery also. Learned counsel submits that it was incumbent upon the jurisdictional Income Tax Department, namely, Mumbai to have raised separate - 7 - HC-KAR NC: 2025:KHC-D:9143 CRL.P No.100679 of 2020 C/W CRL.P No.100415 of 2020 claim in respect of the gold jewellery, but, having regard to the Income Tax Returns filed by the private respondent herein no demand has been raised. 6. In that view of the matter, learned counsel submits that the prayer made in these petitions regarding the release of the custody of the gold ornaments may not survive for consideration. 7. Learned counsel for the petitioners is not in a position to dispute the submissions made by the learned counsel for the private respondents. It is also a fact that the petitioners are not in a position to place before this Court any material such as demand raised by the concerned Central Circle insofar as the gold jewellery against the private respondents herein. 8. Having regard to the subsequent developments and in view of the fact that the private respondents herein have filed their Income Tax Returns claiming the ownership of the gold jewellery and assessed the same to - 8 - HC-KAR NC: 2025:KHC-D:9143 CRL.P No.100679 of 2020 C/W CRL.P No.100415 of 2020 tax, as rightly submitted by the learned counsel for the private respondents herein, the petitions do not survive for consideration. 9. In that view of the matter, both these criminal petitions are disposed of in view of the above facts. Ordered accordingly. Sd/- (R.DEVDAS) JUDGE BVV, CT:VP LIST NO.: 1 SL NO.: 3