Application of seized assets: statute permits AO to appropriate assets for tax recovery while preserving release safeguards.
Clause 250 authorises the Assessing Officer to apply assets seized or requisitioned towards tax, penalty and interest liabilities (excluding advance tax), covering liabilities under the new Act, the Income tax Act and the Black Money Act. It preserves application of money first, permits appropriation and sale of non monetary assets as prescribed, and allows other recovery modes. Assets may be released on application within thirty days subject to AO satisfaction and senior officer approval and must be released within 120 days; excess assets must be returned and interest is payable on prolonged retention under a specified formula.