2004 (11) TMI 100

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....annum, and further interest on the above amount of Rs. 6,49,210 at the rate of 15 per cent. from April 9, 1990 till the date of payment. The assessee was searched at the Bombay airport and on his person a sum of Rs. 9,80,000 was found and seized by the income-tax authorities on April 4, 1984. In view of this seizure and the provisions contained in section 132 of the Income-tax Act, 1961 (hereinafter to be referred as "the Act"), an order was made under section 132(5) of the Act on July 4, 1984. The order could have been challenged by the petitioner under sub-section (11) of section 132 of the Act. However, the order was accepted and no challenge was made thereto. It appears that on October 25, 1985 the Assessing Officer completed the ass....

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....der distraint as if such distraint was effected by the Assessing Officer or, as the case may be, Tax Recovery Officer under authorization from the Chief Commissioner or Commissioner under sub-section (5) of section 226 and the Assessing Officer or, as the case may be, 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 sub-section (1) are discharged shall be forthwith made ov....

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.... assessee preferred an appeal against the order made by the Assessing Officer dated October 25, 1985 and the Commissioner of Income-tax (Appeals) set aside the order made by the Assessing Officer on July 4, 1986 and thus deleted the addition of Rs. 9,85,000 which included the seized amount. Even after this order the assessee did not approach the court for appropriate relief. It is further required to be noted that the Revenue appealed to the Income-tax Appellate Tribunal against the order made by the Commissioner of Income-tax (Appeals). However, that is not relevant to the issue before us. In the absence of any order indicating that the Assessing Officer was restrained from releasing the seized amount, it cannot be urged that the assessee ....