India - Income Tax Act 2010 - Saarc

1.629 CH. XIII - INCOME-TAX AUTHORITIES - POWERS S. 132B(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 GifttaxAct, 1958 (18 of 1958) and the Interest-tax Act, 1974 (45 of 1974),and the amount of the liability determined on completion of theassessment 39 [under section 153A and the assessment of the yearrelevant to the previous year in which search is initiated or requisitionis made, or the amount of liability determined on completion of theassessment under Chapter XIV-B for the block period, as the casemay be] (including any penalty levied or interest payable in connec-(Contd. from p. 1.628)1-10-1967, Finance Act, 1972, w.e.f. 1-4-1972, Taxation Laws (Amendment) Act, 1984, w.e.f.1-10-1984 and Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1988/1-4-1989, read asunder:“132B. Application of retained assets.—(1) The assets retained under sub-section (5) ofsection 132 may be dealt with in the following manner, namely :—(i) The amount of the existing liability referred to in clause (iii) of the said sub-sectionand the amount of the liability determined on completion of the regular assessmentor reassessment for all the assessment years relevant to the previous years to whichthe income referred to in clause (i) of that sub-section relates (including any penaltylevied or interest payable in connection with such assessment or reassessment) andin respect of which he is in default or is deemed to be in default may be recoveredout of such assets.(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 liabilitiesreferred to in clause (i) and the assessee shall be discharged of such liability to theextent of the money so applied.(iii) The assets other than money may also be applied for the discharge of any suchliability referred to in clause (i) as remains undischarged and for this purpose suchassets shall be deemed to be under distraint as if such distraint was effected by theAssessing Officer or, as the case may be, Tax Recovery Officer under authorisationfrom the Chief Commissioner or Commissioner under sub-section (5) of section 226and the Assessing Officer or, as the case may be, Tax Recovery Officer may recoverthe amount of such liabilities by the sale of such assets and such sale shall beeffected in the manner laid down in the Third Schedule.(2) Nothing contained in sub-section (1) shall preclude the recovery of the amount ofliabilities 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 sub-section (1) are discharged shall be forthwith made over or paid to the personsfrom whose custody the assets were seized.(4) (a) The Central Government shall pay simple interest at the rate of fifteen per cent perannum on the amount by which the aggregate of money retained under section 132 andof the proceeds, if any, of the assets sold towards the discharge of the existing liabilityreferred to in clause (iii) of sub-section (5) of that section exceeds the aggregate of theamounts required to meet the liabilities referred to in clause (i) of sub-section (1) of thissection.(b) Such interest shall run from the date immediately following the expiry of the periodof six months from the date of the order under sub-section (5) of section 132 to the dateof the regular assessment or reassessment referred to in clause (i) of sub-section (1) or, asthe case may be, to the date of last of such assessments or reassessments.”38. See also Instruction No. 11/2006, dated 1-12-2006. For details, see Taxmann’s MasterGuide to Income-tax Act.39. Substituted for “under Chapter XIV-B for the block period” by the Finance Act, 2003, w.e.f.1-6-2003.