Cash of ₹ 35 lakh was seized on 12th Sept., 2018 in a search conducted in the premises of an assessee as per section 132 of the Act. The assessee moved an application on 27th Oct., 2018 to release the cash, after explain

Seeking release of cash seized in search The provision to section 132B(1)(i) of the Income Tax Act, 1961 provides that where the person makes an application within 30 days from the end of the month in which the asset was seized, for release of the asset by explaining the nature and source of acquisition of the asset to the satisfaction of the Assessing Officer, then, the Assessing Officer may, with the prior approval of the Principal Chief Commissioner or Principal Commissioner, release the asset after recovering the existing liability under the Act out of such assets. 'Existing liability', however, does not include advance tax payable. Such asset has to be released within 120 days from the date on which the last of the authorization for search under section 132 was executed. In this case, since the application was made to the A.O. within the 30 days period from the end of the month in which the asset was seized, the amount of existing liability may be recovered out of the asset and the balance may be released within 120 days from the date on which the last of the authorizations for search under section 132 was executed.