Seized Cash – Like a monkey on assessee’s back
Introduction
1. Finance Act, 2013 has inserted Explanation 2 to section 132B which reads as under:-
“For the removal of doubts, it is thereby declared that the ‘existing liability’ does not include advance tax payable in accordance with the provision of Part C of Chapter XVII”.
Section 132B of the Income-tax Act prescribes the provisions regarding the application of seized assets, including cash seized during the course of income-tax search conducted under section 132 or requisitioned under section 132A of the Act. It prescribes, inter alia, that the seized assets/cash can be utilized for the purpose of recovery and adjustment of the amount of any existing tax liability and the amount of the liability determined on completion of the assessment in pursuance of search under section 153A.
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