Officers from Income Tax Department have seized some assets and money from Gul Ltd.'s premises. After one year of such seizure the assessment was completed by the Income Tax Department and the outstanding tax demands wer

According to Section 132B(4) of the Income-tax Act, 1961 (the Act), the Central Government shall pay simple interest at the rate of one-half per cent for every month or part of a month on the amount by which the aggregate amount of money seized under section 132 of the Act or requisitioned under section 132A of the Act, as reduced by the amount of money, if any, released under the first proviso to clause (i) of sub-section (1), and of the proceeds, if any, of the assets sold towards the discharge of the existing liability referred to in clause (i) of sub-section (1), exceeds the aggregate of the amount required to meet the liabilities referred to in clause (i) of sub-section (1) of this section. Such interest shall run from the date immediately following the expiry of the period of one hundred and twenty days from the date on which the last of the authorisations for search under section 132 of the Act or requisition under section 132A of the Act was executed to the date of completion of the assessment under section 153A of the Act or under Chapter XIV-B. Hence, the claim of the Company is justified.