Application of seized or requisitioned assets-adjustment prior to completion of assessment - Income Tax - F.No. 286/149/2003-IT(Inv.II)

F.No. 286/149/2003-IT(Inv.II) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, the 24th March, 2004. To All Directors General of Income Tax (Inv.)/ All Chief Commissioners of Income Tax(Central). Sub : Application of seized or requisitioned assets-adjustment prior to completion of assessment - reg. Sir, Section 132B introduced by the Finance Act 2002 w.e.f. 1.6.2002 and as amended subsequently provides that the existing liability under the various Direct Tax Laws and the liability as determined on completion of the assessment under Chapter XIVB/Section 153A etc. may be recovered out of the assets seized under Section 132 or those requisitioned under Section 132A. 2. Doubts have been expressed that seized/requisitioned assets may not be adjusted against liability of tax etc. on admitted income prior to completion of assessment because said provisions of Section 132B provides to adjust the seized/requisitioned assets against liability determined on completion of assessment. 3. In this regard reference is made to the Section 140A which provides that the tax payable on income admitted u/s 158BC/153A etc. has to be paid before furnishing the relevant return failing which the assessee shall be deemed to be an assessee in default. Thus, for the purposes of Section 132B, the liability of self-assessment tax u/s 140A shall be an existing liability and the same can be recovered out of the seized/requisitioned assets even prior to completion of relevant assessment. Yours faithfully, (MAHENDRA GOYAL) OSD (Inv.II III) Tele : 23092643