TaxTMI 
TaxTMI 
2010 (1) TMI 705
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.... payable at Rs.28,37,532. There were pre paid taxes to the extent of Rs.1,03,04,669. Hence a sum of Rs.74,67,137 was determined as excess refundable by the Assessing Officer. On such amount which is refundable, the Assessing Officer allowed interest under section 244A to the extent of Rs.6,34,707. The Assessing Officer issued a notice under section 154 on 5.1.2009 vide which the Assessing Officer propose to withdraw the interest under section 244A allowed on self-assessment tax which is included in the pre paid tax of Rs.1,03,04,669. In response to the notice issued by the Assessing Officer, the assessee vide letter dt.20.1.2009 submitted that interest was already granted and therefore the same cannot be withdrawn by passing an order under ....
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.... ITR 463) (SC) iv) CIT vs. South Indian Bank Ltd. (249 ITR 304) (SC) v) Satishchandra and Co. vs. CIT (234 ITR 70) (Kar) vi) ACIT vs. B.C. Parthasarathy (101 TTJ 448) (Bangalore Tribunal) vii) CIT vs. Satyanarayanan Bhalotia (14 Taxman 34) (Cal) viii) CIT vs. Lakshmi Prasad Lahkar (220 ITR 100) (Gau) ix) CIT vs.MMTC Ltd. (246 ITR 725) (Del) x) Additional CIT vs. Srindwell Norton Ltd. (102 TTJ 265) (Mum) The learned CIT(A) mentioned that the Assessing Officer has pointed that interest on self assessment tax is not payable under section 244A and therefore the mistake made in the assessment order is a mistake of law. 4. The learned CIT(A) after considering the submissions ....
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....rties. It is noted that search under section 132 was conducted on 21.9.2005 at office premises of the assessee and also at residential premises of its Chairman Sri Y. Abdulla Kunhi. During the course of search proceedings at the residential premises of Sri Y. Abdulla Kunhi, a sum of Rs.76,39,525 was found and out of which a sum of Rs.74 lakhs was seized. The Assessing Officer issued notice under section 153A of the Income Tax Act, 1961 and in response to that notice, the assessee filed a return of income on 27.2.2006 vide which income of Rs.2,51,41,336 was disclosed. As per the return the assessee was liable to pay self assessment tax of Rs.1,02,63,449. The assessee did not pay the self assessment tax due as per the returned income. The ass....
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....sment order and the additional income consisted of unexplained expenditure and unexplained creditors for building. 6. In the assessment order, the Assessing Officer has not treated the cash seized as undisclosed income. Section 132B of the Income Tax Act, 1961 deals with the application of seized cash or requisitioned asset. As per proviso to section 132B(1)(i), it is mentioned that the assessee can make an application for the release of assets within 30 days from the end of the month in which the asset is seized provided the assessee can specify the Assessing Officer that asset as seized is explained. In case such asset is explained then the seized asset is to be released after adjusting the existing liability. Section 132B (1)(i) ....
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....ment. The provisions of the Act clearly mentions that the seized cash should have been adjusted against the existing liability or should have been adjusted. Under section 140A(1), the assessee was required to pay tax of Rs.1,02,63,449 on the income declared in the return and the assessee made a request that seized cash may be adjusted against the tax payable as per the return filed and the department accordingly adjusted the cash against the tax which was payable on the basis of return. Section 140A(3) specifies that the assessee is to be deemed to be an assessee in default if the assessee fails to pay the whole or any part of the tax in accordance with the provisions of sub-section (1) of section 140A. Thus the tax which is payable as per ....