Release of seized assets after liabilities are discharged under Section 132B requires prompt return of the remaining property.

Section 132B(3) requires seized assets or sale proceeds remaining after discharge of liabilities under section 132B(1)(i) to be forthwith returned to the person from whose custody they were seized. On the stated facts, the petitioner had already paid the amount due under the Settlement Commission order, and the pending release request could not justify continued retention unless the respondents could show some further sum remained payable. The operative point is that once the stated liabilities are discharged, the statutory duty is to release the balance assets without delay.

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Issues: Whether, after discharge of the liabilities against the seized assets, the respondents were bound under section 132B(3) of the Income-tax Act, 1961 to release and make over the remaining assets to the petitioner.

Analysis: Section 132B(3) requires that any assets or sale proceeds remaining after the liabilities referred to in section 132B(1)(i) are discharged must be forthwith made over or paid to the person from whose custody the assets were seized. On the facts stated, the petitioner had already paid the amount due pursuant to the order of the Settlement Commission, and the application for release of assets had remained pending despite reminders. In that situation, the continued retention of the assets was unjustified unless some further amount was shown to be due.

Conclusion: The petitioner was entitled to release of the seized assets forthwith unless the respondents could establish that any further amount remained payable.

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