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Any Assets seized under this section shall be first applied to pay the existing liability under Income-Tax Act, or Wealth Tax Act or Gift Tax Act.
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Next it shall be adjusted against the tax liability determined uder block assessment and any penalty levied or interest payable under such asseessment.
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In case assessee has explained the source of any asset, the authority may recover the amount of tax liability as mentioned above and remaining portion if any may be released but with the prior approval of CCIT or CIT. Such asset may be released to the assessee within 120 days from last authorization made for search and seizure.
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In case seize assets consists of money or partly of money and partly of other assets, the authority may apply such money to the tax liabilities mentioned above and assessee shall be discharged of such liability upto the extent of such money.
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The other assets shall be under distraint (cannot be sold) and he Assessing Office shall sell the assets but after prior approval of CCIT or CIT and apply such money to the existing liabilities and liability under block assessment.
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The authority can realize the tax by any other mode also.
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The reaming assets shall be handed over to the assessee from whose custody they were seized.
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The Govt. shall pay an interest @ 1 ½ % for every month or part of a month if there is any surplus of assets over the liability so adjusted. This interest shall be calculated from the date on which 120 days expire from the day last authorization was made till the day block assessment is made.
