Section 132B:
Application of seized or requisitioned assets.
1,2(1) The assets seized under section
132 or requisitioned under section 132A may be dealt with in the following manner, namely:—
(i) the amount of any existing liability under this Act, the Wealth-tax Act, 1957 (27 of 1957), the
Expenditure-tax Act, 1987 (35 of 1987), the Gift-tax Act, 1958 (18 of 1958) and the Interest-tax Act,
1974 (45 of 1974), and the amount of the liability determined on completion of the assessment
3
under section 153A and the assessment of the year relevant to the previous year in which search is
initiated or requisition is made, or the amount of liability determined on completion of the assessment
under Chapter XIV-B for the block period, as the case may be (including any penalty levied or
interest payable in connection with such assessment) and in respect of which such person is in default
or is 4
deemed to be in default, or the amount of liability arising on an application made before the
Settlement Commission under sub-section (1) of section 245C, may be recovered out of such assets:
5
Provided that where the person concerned makes an application to the Assessing Officer within
thirty days from the end of the month in which the asset was seized, for release of asset and the nature
and source of acquisition of any such asset is explained to the satisfaction of the Assessing Officer,
the amount of any existing liability referred to in this clause may be recovered out of such asset and
the remaining portion, if any, of the asset may be released, with the prior approval of the 6
Principal
Chief Commissioner or Chief Commissioner or 7
Principal Commissioner or Commissioner, to the
person from whose custody the assets were seized:
Provided further that such asset or any portion thereof as is referred to in the first proviso shall be
released within a period of one hundred and twenty days from the date on which the last of the
authorisations for search under section 132 or for requisition under section 132A, as the case may be,
was executed:
(ii) if the assets consist solely of money, or partly of money and partly of other assets, the
Assessing Officer may apply such money in the discharge of the liabilities referred to in clause (i) and
the assessee shall be discharged of such liability to the extent of the money so applied;
(iii) the assets other than money may also be applied for the discharge of any such liability
referred to in clause (i) as remains undischarged and for this purpose such assets shall be deemed to
be under distraint as if such distraint was effected by the Assessing Officer or, as the case may be, the
Tax Recovery Officer under authorisation from the 8
Principal Chief Commissioner or Chief
Commissioner or 9
Principal Commissioner or Commissioner under sub-section (5) of section
226 and the Assessing Officer or, as the case may be, the Tax Recovery Officer may recover the
amount of such liabilities by the sale of such assets and such sale shall be effected in the manner laid
down in the Third Schedule.
(2) Nothing contained in sub-section (1) shall preclude the recovery of the amount of liabilities
aforesaid by any other mode laid down in this Act.
(3) Any assets or proceeds thereof which remain after the liabilities referred to in clause (i) of subsection (1) are discharged shall be forthwith made over or paid to the persons from whose custody the
assets were seized.
(4) (a) The Central Government shall pay simple interest at the rate of 10
one-half per cent. for every
month or part of a month on the amount by which the aggregate amount of money seized under section
132 or requisitioned under section 132A, as reduced by the amount of money, if any, released under the
first proviso to clause (i) of sub-section (1), and of the proceeds, if any, of the assets sold towards the
discharge of the existing liability referred to in clause (i) of sub-section (1), exceeds the aggregate of the
amount required to meet the liabilities referred to in clause (i) of sub-section (1) of this section.
(b) Such interest shall run from the date immediately following the expiry of the period of one
hundred and twenty days from the date on which the last of the authorisations for search under section
132 or requisition under section 132A was executed to the date of completion of the assessment
11
under section 153A or under Chapter XIVB.
12
Explanation 1.—In this section,—
(i) “block period” shall have the meaning assigned to it in clause (a) of section 158B;
(ii) “execution of an authorisation for search or requisition” shall have the same meaning as
assigned to it in Explanation 2 to section 158BE.
13
Explanation 2.—For the removal of doubts, it is hereby declared that the “existing liability” does
not include advance tax payable in accordance with the provisions of Part C of Chapter XVII.
Notes:
1. Section 132A renumbered as section 132B thereof by Act 41 of 1975, s. 36 (w.e.f. 1-10-1975).
2. Subs. by Act 20 of 2002, s. 57, for section 132B (w.e.f. 1-6-2002).
3. Subs. by Act 32 of 2003, s. 60, for “under Chapter XIVB for the block period” (w.e.f. 1-6-2003).
4. Subs. by Act 20 of 2015, s. 34, for “deemed to be in default, may be recovered out of such assets” (w.e.f. 1-6-2015).
5. Subs. by Act 32 of 2003, s. 60, for “Provided that where the nature and source of acquisition of any such asset is
explained” (w.e.f. 1-6-2003).
6. Subs. by Act 25 of 2014, s. 4, for “Chief Commissioner” (w.e.f. 1-6-2013).
7. Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 1-6-2013).
8. Subs. by Act 25 of 2014, s. 4, for “Chief Commissioner” (w.e.f. 1-6-2013).
9. Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 1-6-2013).
10. Subs. by Act 22 of 2007, s. 43, for “six per cent. per annum” (w.e.f. 1-4-2008). Earlier “six” was substituted for “eight”
by Act 54 of 2003, s. 6 (w.e.f. 8-9-2003).
11. Subs. by Act 32 of 2003, s. 60, for “under Chapter XIV-B” (w.e.f. 1-6-2003).
12. The Explanation renumbered as Explanation 1 thereof by Act 17 of 2013, s. 34 (w.e.f. 1-6-2013).
13. Ins. by s. 34, ibid. (w.e.f. 1-6-2013).