Income Tax Act, 2025
Section 8: Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 12013).
8. Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 12013).
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(ii) 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 clause (i) and
the assessee shall be discharged of such liability to the extent of the money so applied;
(iii) the assets other than money may also be applied for the discharge of any such liability
referred to in clause (i) as remains undischarged and for this purpose such assets 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 under authorisation from the 1[Principal Chief Commissioner or Chief
Commissioner] or 2[Principal Commissioner or Commissioner] under sub-section (5) of section
226 and the Assessing Officer or, as the case may be, the Tax Recovery Officer may recover the
amount of such liabilities by the sale of such assets and such sale shall be effected in the manner laid
down in the Third Schedule.
(2) Nothing contained in sub-section (1) shall preclude the recovery of the amount of liabilities
aforesaid by any other mode laid down in this Act.
(3) Any assets or proceeds thereof which remain after the liabilities referred to in clause (i) of subsection (1) are discharged shall be forthwith made over or paid to the persons from whose custody the
assets were seized.
(4) (a) The Central Government shall pay simple interest at the rate of 3[one-half per cent. for every
month or part of a month] on the amount by which the aggregate amount of money seized under section
132 or requisitioned under section 132A, as reduced by the amount of money, if any, released under the
first proviso to clause (i) of sub-section (1), and of the proceeds, if any, of the assets sold towards the
discharge of the existing liability referred to in clause (i) of sub-section (1), exceeds the aggregate of the
amount required to meet the liabilities referred to in clause (i) of sub-section (1) of this section.
(b) Such interest shall run from the date immediately following the expiry of the period of one
hundred and twenty days from the date on which the last of the authorisations for search under section
132 or requisition under section 132A was executed to the date of completion of the assessment
4[under section 153A or under Chapter XIVB].
5[Explanation 1.]—In this section,—
(i) “block period” shall have the meaning assigned to it in clause (a) of section 158B;
(ii) “execution of an authorisation for search or requisition” shall have the same meaning as
assigned to it in Explanation 2 to section 158BE.]
6[Explanation 2.—For the removal of doubts, it is hereby declared that the “existing liability” does
not include advance tax payable in accordance with the provisions of Part C of Chapter XVII.]
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 clause
and
the assessee shall be discharged of such liability to the extent of the money so applied;
the assets other than money may also be applied for the discharge of any such liability
referred to in clause
as remains undischarged and for this purpose such assets 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 under authorisation from the 1[Principal Chief Commissioner or Chief
Commissioner] or 2[Principal Commissioner or Commissioner] under sub-section
of section
226 and the Assessing Officer or, as the case may be, the Tax Recovery Officer may recover the
amount of such liabilities by the sale of such assets and such sale shall be effected in the manner laid
down in the Third Schedule.
Nothing contained in sub-section
shall preclude the recovery of the amount of liabilities
aforesaid by any other mode laid down in this Act.
Any assets or proceeds thereof which remain after the liabilities referred to in clause
of subsection
are discharged shall be forthwith made over or paid to the persons from whose custody the
assets were seized.
(a) The Central Government shall pay simple interest at the rate of 3[one-half per cent. for every
month or part of a month] on the amount by which the aggregate amount of money seized under section
132 or requisitioned under section 132A, as reduced by the amount of money, if any, released under the
first proviso to clause
of sub-section
of sub-section
of sub-section
of this section.
Such interest shall run from the date immediately following the expiry of the period of one
hundred and twenty days from the date on which the last of the authorisations for search under section
132 or requisition under section 132A was executed to the date of completion of the assessment
4[under section 153A or under Chapter XIVB].
5[Explanation 1.]—In this section,—
“block period” shall have the meaning assigned to it in clause
of section 158B;
“execution of an authorisation for search or requisition” shall have the same meaning as
assigned to it in Explanation 2 to section 158BE.]
6[Explanation 2.—For the removal of doubts, it is hereby declared that the “existing liability” does
not include advance tax payable in accordance with the provisions of Part C of Chapter XVII.]