Retention and application of seized or requisitioned assets.
139. (1) The Assessing Officer may recover the amount of any liability, referred to in sub-section (2),
(a) out of the material, other than books of account or documents, (hereinafter referred to as "assets") seized under section 135 or requisitioned under section 136; or
(b) by any other mode laid down under this Code.
(2) The amount of any liability shall be the aggregate of
(a) the amount of any liability existing under this Code, the Income-tax Act, 1961, or the Wealth-tax Act, 1957, as they stood before the commencement of this Code, the Gift-tax Act, 1958, the Interest-tax Act, 1974 and the Expenditure-tax Act, 1987, till the date of search under section 135 or requisition under section 136;
(b) the amount of any liability under this Code, or under any of the Acts referred to in clause (a), determined after the date of the search, or requisition, and till the date of completion of the assessment in consequence to the search or the requisition;
(c) the amount of any liability determined on completion of the assessment in consequence to the search or the requisition; and
(d) the amount of any liability under this Code, or under any of the Acts referred to in clause (a), determined after the completion of the assessment in consequence to the search, or the requisition, and till the date of release of the assets.
(3) The Assessing Officer may recover the existing liability referred to in clause (a) of sub-section (2) and release the remaining portion of the asset, if any, within a period of one hundred and twenty days from the date on which the last of the authorisations for search under section 135 was executed, to the person from whose custody the assets were seized, if
(a) an application is made by the person within a period of thirty days from the end of the month in which the assets were seized;
(b) the nature and source of the assets is explained by the person to the satisfaction of the Assessing Officer; and
(c) the prior approval of the Chief Commissioner or the Commissioner is obtained.
(4) The assets, other than money, 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 and the recovery of any liability out of such assets shall be effected in the manner laid down in the Fifth Schedule.
(5) The Assessing Officer shall release, within the time and subject to such conditions, as may be prescribed, to the person from whose custody the assets were seized, any asset or proceeds thereof, which remains after the liabilities referred to in sub-section (2) are discharged.
(6) The Assessing Officer may with the prior approval of the Commissioner release any seized or requisitioned asset (other than cash) before making assessment in consequence of search or requisition, if the concerned person deposits with the Assessing Officer an amount of money equal to the value of such asset on the date of the release and the amount so deposited shall be deemed to be cash seized or requisitioned for the purposes of this Code.
(7) 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 sub-section (2) and the assessee shall be discharged of such liability to the extent of the money so applied.
