Section 132B provides statutory simple interest on cash...

Section 132B provides statutory simple interest on cash requisitioned under section 132A from the day after expiry of 120 days following requisition until completion of assessment. Where no tax liability is determined, the requisitioned cash must be released, with interest at one-half per cent for every month or part thereof during that pre-assessment period. Following assessment and discharge of any liability, seized cash must be released forthwith. Continued retention contrary to that requirement warrants restitutionary compensation for loss of use of money, irrespective of whether the tax department earned interest on the retained cash. Interest at six per cent per annum applies until actual release.