Seized cash can be adjusted toward advance tax; pending SLP does not suspend binding High Court precedent.

Seized cash could be adjusted against advance tax instalments on the assessee's written request, and the authorities were bound to follow the jurisdictional High Court's ruling on that point. Pendency of a special leave petition did not weaken the binding force of the High Court decision. As the Department did not act on the request, denial of the adjustment was not justified, and the corresponding interest under section 234B was not sustainable to that extent. The direction to give credit for the seized cash and reduce the interest was upheld in favour of the assessee.

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Issues: Whether seized cash, on the assessee's request, could be adjusted towards advance tax liability so as to reduce interest under section 234B, and whether the authorities could disregard the jurisdictional High Court's view because a special leave petition was pending.

Analysis: The assessee had made a written request for adjustment of the seized cash towards advance tax instalments. The issue had already been settled by the jurisdictional High Court in favour of such adjustment, and the authorities were bound to follow that decision. The mere pendency of a special leave petition before the Supreme Court did not dilute the binding force of the High Court judgment. Since the Department had not acted on the assessee's request, the adjustment could not be denied and consequential interest under section 234B was not sustainable to that extent.

Conclusion: The issue was decided in favour of the assessee. The direction to adjust the seized cash against advance tax and to reduce the interest under section 234B was upheld.

Ratio Decidendi: Seized cash may be adjusted towards advance tax on the assessee's request, and a jurisdictional High Court decision on the point remains binding on subordinate authorities despite pendency of a special leave petition.

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