37B. Power to requisition books of account, etc
Where the [Director General or Director] or the [Chief Commissioner or Commissioner], in consequence of information in his possession, has reason to believe that—
any person to whom a notice under sub-section (4) of section 16 or a summons under section 37 was issued to produce, or cause to be produced, any books of account or other documents has omitted or failed to produce, or cause to be produced, such books of account or other documents as required by such notice or summons and the said books of account or other documents have been taken into custosdy by any officer or authority under any other law for the time being in force, or 1. Subs. by Act 4 of 1988, s. 127, for “Wealth-tax Officer” (w.e.f. 1-4-1988). 2. Subs. by s. 127, ibid., for “Commissioner” (w.e.f. 1-4-1988). 3. Ins. by s. 154, ibid. (w.e.f. 1-4-1989). 4. Subs. by s. 154, ibid., for sub-section (10) (w.e.f. 1-4-1989). 5. Subs. by s. 127, ibid., for “Director of Inspection” (w.e.f. 1-4-1988).
any books of account or other documents will be useful for, or relevant to, any proceeding under this Act and any person to whom a notice or summons as aforesaid has been or might be issued will not, or would not, produce or cause to be produced such books of account or other documents on the return of such books of account or other documents by any officer or authority by whom or which such books of account or other documents have been taken into custody under any other law for the time being in force, or
[any assets] disproportionate to the known assets of any person, particulars of which will be useful for, or relevant to, any proceeding under this Act, have been taken into custody by any officer or authority under any other law for the time being in force, from the possession of such person, then, the [Director-General or Director] or the [Chief Commissioner or Commissioner] may authorise any [Joint Director], [Joint Commissioner], [Assistant Director or Deputy Director] [, [Assistant Commissioner or Deputy Commissioner] or Income-tax Officer] (hereafter in this section referred to as the requisitioning officer) to require such officer or authority [to deliver such books of account, other documents, or assets to the requisitioning officer].
On a requisition being made under sub-section (1), [the officer or authority referred to in clause (a) or clause (b) or clause (c), as the case may be, of that sub-section shall deliver the books of account, other documents, or assets to the requisitioning officer either forthwith or when such officer or authority is of the opinion that it is no longer necessary to retain the same in his or its custody.] [(3) Where any books of account, other documents, or assets have been delivered to the requisitioning officer, the provisions of sub-sections (5) to (12) (both inclusive) of section 37A and section 37C shall, so far as may be, apply as if such books of account, other documents, or assets had been seized under sub-section (1) of section 37A by the requisitioning officer from the custody of the person referred to in clause (a) or clause (b) or clause (c) of sub-section (1) of this section and as if for the words “the authorised officer” occurring in sub-sections (5) to (12) aforesaid, the words “the requisitioning officer” were substituted.]] [37C. Application of retained assets.—(1) The assets retained under sub-section (5A) of section 37A may be dealt with in the following manner, namely:—
the amount of the existing liability referred to in clause (iv) of the said sub-section and the amount of the liability determined on completion of the regular assessment or reassessment for all the assessment years for which the net wealth referred to in clause (i) of that sub-section is assessable to tax (including any penalty levied or interest payable, in connection with such assessment or reassessment) and in respect of which the assessee is in default or is deemed to be in default may be recovered out of such assets;
if the assets consist solely of money, or partly of money and partly of other assets, the Assessing Officer may apply such money in the discharge of the liabilities referred to in clause (i) and the assessee shall be discharged of such liabilities to the extent of the money so applied; 1. Subs. by Act 4 of 1988, s. 155, for “any articles or things including money” (w.e.f. 1-4-1989). 2. Subs. by s. 127, ibid., for “Director of Inspection” (w.e.f. 1-4-1988). 3. Subs. by s. 127, ibid., for “Commissioner” (w.e.f. 1-4-1988). 4. Subs. by Act 21 of 1998, s. 66, for “Deputy Director” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for “Deputy Director of Inspection” (w.e.f. 1-4-1988). 5. Subs. by s. 66, ibid., for “Deputy Commissioner” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 127, for “Inspecting Assistant Commissioner” (w.e.f. 1-4-1988). 6. Subs. by s. 66, ibid., for “Assistant Director” (w.e.f. 1-10-1998). Earlier the quoted words were substituted by Act 4 of 1988, s. 154, for “Assistant Director of Inspection” (w.e.f. 1-4-1988). 7. Subs. by Act 4 of 1988, s. 155, for “or Wealth-tax Officer” (w.e.f. 1-4-1988). 8. Subs. by Act 21 of 1998, s. 66, for “Assistant Commissioner” (w.e.f. 1-10-1998). 9. Subs. by Act 4 of 1988, s. 155, for clauses (i) and (ii) (w.e.f. 1-4-1989). 10. Subs. by s. 155, ibid., for sub-section (3) (w.e.f. 1-4-1989). 11. Ins. by s. 156, ibid. (w.e.f. 1-4-1989).
the assets other than money may also be applied for the discharge of any such liability referred to in clause (i) as remains undischarged and for this purpose such assets shall be deemed to be under distraint as if such distraint was effected by the Assessing Officer under authorisation from the Chief Commissioner or Commissioner under sub-section (5) of section 226 of the Income-tax Act as made applicable to this Act by section 32, and the Assessing 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 to the Income-tax Act as made applicable to this Act by section 32.
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.
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 over or paid to the persons from whose custody the assets were seized.
(a) The Central Government shall pay simple interest at the rate of fifteen per cent per annum on the amount by which the aggregate of the money retained under section 37A and of the proceeds, if any, of the assets sold towards the discharge of the existing liability referred to in clause (iv) of sub-section
of that section exceeds the aggregate of the amounts 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 six months from the date of the order under sub-section (5A) of section 37A to the date of the regular assessment or reassessment referred to in clause (i) of sub-section (1) or, as the case may be, to the date of the last of such assessments or reassessments.]