Treat seized cash as an advance tax during search

[Vikas Aggarwal]

Respected Sir,

Please help me in the following issues.

1. Search initiated on end of march2011in the premises of an assessee & seized cash of Rs. 45 lakh, asessee wrote a letter to department on august, 2011 & request to treat seized cash as an advance tax for the FY 2010-11. and show his seized cash as an advance tax in our computation, can department allowed to treat seized cash as an advance tax, if yes (please provide any case law (delhi high court/supreme court, if any) in this regard).

2. What is the situation if assessee booked a cash sale of Rs. 45 lakh in th above case.

 

Regards,

CA Vikas Aggarwal.

AI Summary

Seized cash as advance tax requires release under Section 132B and assessing officer satisfaction before appropriation.
Seized cash cannot be treated as advance tax until adjudication and release procedures under Section 132B are followed. The person from whose custody assets were seized must apply within thirty days from the end of the seizure month; if the Assessing Officer is satisfied and required approvals are obtained, liabilities may be recovered from the asset and any remainder released, otherwise confiscation may occur.