Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
Sections 132B, 140A, 153A and 234B of the Income Tax Act, 1961 were analyzed regarding adjustment of seized cash against tax liability. The appellants claimed that cash seized from Sarup Chand should be treated as their cash and adjusted against their tax liability u/s 140A read with Section 153A. However, Section 132B provides for dealing with seized assets as prescribed. While determining tax liability, tax deducted/collected at source and advance tax are deducted from total liability. The appellants did not pay advance tax and wrongly claimed the seized amount from Sarup Chand should be treated as their advance tax u/s 132B. The seized cash was in Sarup Chand's bank account, and until liability determination, there was no question of adjustment against appellants' liability. They were liable for interest u/s 234B on delayed advance tax payment. The seized cash from Sarup Chand could not be treated as appellants' cash from seizure date and could not be adjusted against their liability on that date. Revenue correctly adjusted seized cash from assessment framing date and charged interest u/s 234B on delayed advance tax payment.
Sections 132B, 140A, 153A and 234B of the Income Tax Act, 1961 were analyzed regarding adjustment of seized cash against tax liability. The appellants claimed that cash seized from Sarup Chand should be treated as their cash and adjusted against their tax liability u/s 140A read with Section 153A. However, Section 132B provides for dealing with seized assets as prescribed. While determining tax liability, tax deducted/collected at source and advance tax are deducted from total liability. The appellants did not pay advance tax and wrongly claimed the seized amount from Sarup Chand should be treated as their advance tax u/s 132B. The seized cash was in Sarup Chand's bank account, and until liability determination, there was no question of adjustment against appellants' liability. They were liable for interest u/s 234B on delayed advance tax payment. The seized cash from Sarup Chand could not be treated as appellants' cash from seizure date and could not be adjusted against their liability on that date. Revenue correctly adjusted seized cash from assessment framing date and charged interest u/s 234B on delayed advance tax payment.
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TaxTMI 
TaxTMI 
of 4915 
