Survey, Search & Seizure Income Tax Act, 1961

Instruction No: 1180 Date of Issue: 1/6/1978
4. Release of seized valuable assets under second
proviso to section 132(5)
• Under the second proviso to sec.132(5) the ITO may with the previous
approval of the CIT release seized assets, if if the assessee has paid or
made satisfactory arrangements for payment of tax, interest, and
penalty liabilities referred to in clauses (ii) & (iia) and (iii) of sec.132(5).
A question has been raised as to whether an offer of security of
immovable property by way of deposit of title deeds constitutes
satisfactory arrangements for payment of the amount due under the
Act. The Ministry of law have advised that by merely offering
immovable property as security for payment, it it cannot be said that
satisfactory arrangements for the payment of the amount are made by
the person concerned under the second proviso to sec.132(5).
80