(1) Where any money, bullion, jewelry or other valuable article or thing (hereinafter referred to as assets) seized under section 206 is handed over to the Deputy Commissioner of Taxes, the procedure as described in sub-section (2) is to be followed.

(2) The Deputy Commissioner of Taxes shall give the person concerned a reasonable opportunity of being heard and shall, within 90 (ninety) days of the seizure of the asset and shall undertake the following necessary investigation,—

(a) estimate the undisclosed income (including income from the undisclosed property), in a summary manner to the best of his judgement on the basis of such materials as are available with him;

(b) computation of the amount payable, which shall be the sum of the following items, namely:—

(i) the tax and any other sum payable on the basis of the assessment referred to in clause (a); and

(ii) the amount so required to satisfy such person’s existing tax liability, in respect of which such person is in default or deemed to be in default.

(3) For the purposes of sub-section (2), in computing the period of 90 (ninety) days, any time limit, order or injunction imposed under this section shall exclude any proceedings.

(4) In cases where it is not possible to determine whether the property seized or part thereof relates to any income year or years for the purpose of computation of total income and tax, the Deputy Commissioner of Taxes shall assign the property or part thereof, as the case may be, to the income year of the person in respect of which the property has been seized.

(5) After completing the proceedings under sub-sections (2) and (3), the Deputy Commissioner of Taxes may, with the approval of the Commissioner, order the person concerned to pay the amount referred to in clause (b) of subsection (2).

(6) Where the person concerned makes any payment or takes satisfactory action, the Deputy Commissioner of taxes shall, release the seized property or take such initiative as may be deemed appropriate by him.

(7) Where no satisfactory arrangements have been made for payment under sub-section (2),—

(a) such person shall be deemed to be an assessee for the payment of the unpaid amount of tax; and

(b) the Deputy Commissioner of Taxes may retain in custody such amount of property seized under section 206 as is sufficient to recover the unpaid portion of the tax.

(8) If the Deputy Commissioner of Taxes is satisfied that the property seized under section 206 or any part thereof is in the possession of any person or any other person, he may take action against such person under this section and all the provisions of this section shall be duly applicable.

(9) Any person who is required to pay the amount prescribed under subsection (4), if he is aggrieved, may raise an objection in writing to the Commissioner of Taxes, and the Commissioner shall, after giving the applicant an opportunity of being heard, pass an appropriate order.