Re: Seized cash can be adjusted for DT-VSV scheme if consent of the assessee is received.

is the cash siezed by department under seizer laying with department in PD Account, can be adjusted against amount payable under Vivad Se Vishwas scheme if the assessee informs to adjust it

Finance Act , 2013 has inserted Explanation 2 to section 132B , which reads as under -:

“For the removal of doubts , it is thereby declared that the “ existing liability “ does not include advance tax payable in accordance with the provisions pf part C of Chapter XVII “ .

As pert the above explanation  , the seized cash shall remain as additional security with the income -tax department , to be adjusted any other tax demand which may be created on competition of assessment of search cases .   As regards , cash seized if the said amount is refundable to the assessee as per the law,  then the said amount can be adjusted . Burden is on the assessee to prove that the seized amount is refundable to the assessee. Please refer CBDT Circular No  9 dt. 22- 4 -2020  Questions and answers , 26 and 29 , the same principle will apply to seized cash . The assessee may have to  write to the Designated Authority to adjust the cash seized , in case the Designated Authority  refuses to adjust the cash seized , the assessee  may have to file writ before the High Court .     

 

 

 

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