TMI Blog2014 (4) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... le to the revenue towards tax and undisclosed income - Held that:- The conditions specified in the first proviso, are clearly not attracted - The AO was justified in his conclusion that it is only when the liability is determined on the completion of the assessment that it would stand crystallized and in pursuance of which a demand would be raised and recovery can be initiated - the application filed by the assessee was throughly misconceived and unsustainable with reference to the provisions of Section 132B(1) of the Act - Any action which the Court may direct in respect of an asset, which has been seized, has to be strictly in compliance of Section 132B of the Income Tax Act - Where a case has not been made out within the four corners of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the search proceedings when gold bars weighing about 6 kilograms were found. These gold bars, according to the petitioners, are of a value of Rs.1.81 crores. The gold bars have been seized under a Panchnama. The petitioners moved the Assessing Officer on 14 December 2013 with an application for the sale of the gold bars and for adjustment of the proceeds against the tax liability. The case of the petitioners is that once they have disclosed an undisclosed income of Rs.12.01 crores, the tax liability would work out to Rs.3.60 crores being 30% of the surrender amount and after adjusting the value of the gold bars a balance of Rs.1.78 crores would be the balance and payable to the revenue towards tax and undisclosed income. According to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1957 (27 of 1957), the Expenditure-tax Act, 1987 (35 of 1987), the Gift-tax Act, 1958 (18 of 1958) and the Interest-tax Act, 1974 (45 of 1974), and the amount of the liability determined on completion of the assessment under section 153A and the assessment of the year relevant to the previous year in which search is initiated or requisition is made, or the amount of liability determined on completion of the assessment under Chapter XIV-B for the block period, as the case may be (including any penalty levied or interest payable in connection with such assessment) and in respect of which such person is in default or is deemed to be in default, may be recovered out of such assets : Provided that where the person concerned makes an applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be postulated that a liability has been crystallized. The first proviso to Clause (i) states that the assessee may make an application to the Assessing Officer for release of the asset which has been seized. However, the assessee has to explain the nature and source of acquisition of the asset to the satisfaction of the Assessing Officer. In other words, it is not the ipse dixit of the assessee but the satisfaction of the Assessment Officer on the basis of the explanation tendered by the assessee which is material. Moreover, in such a case the amount of an existing liability can be recovered from out of such asset; such asset being the asset which is referred to in the substantive part of Clause (i). In the present case, the condi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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