2015 (3) TMI 543

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....ure operation was conducted at the residence and business premises of the assessee. The bank lockers were also searched. During the search, a sum of Rs. 4,31,36,000/- was found in cash and seized. The same was deposited by the department in its P.D. Account. The assessee has written a number of letters on 21.03.2010, 29.03.2010 and 05.07.2010 to all the authorities of department to adjust the cash seized against the advance tax for the assessment year 2010-11. When the return for the assessment year under consideration was filed on 30.06.2010 then once again, the assessee made a request the A.O. to adjust the cash lying in the P.D. account against the advance tax, but the A.O. charged the interest under Section-234A, 234B & 234C of the Act.....

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....t of liability determined on completion of the assessment under Chapter XIV-B for the block period, as the case may be] (including any penalty levied or interest payable in connection with such assessment) and in respect of which such person is in default or is deemed to be in default, may be recovered out of such assets. [Provided that where the person concerned makes an application to the Assessing Officer within thirty days from the end of the month in which the asset was seized, for release of asset and the nature and source of acquisition of any such asset is explained] to the satisfaction of the Assessing Officer, the amount of any existing liability referred to in this clause may be recovered out of such asset and the remaining po....

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....eady available in the P.D. account maintained by the department. The A.O. as well as other authorities have not accepted the request made by the assessee for the adjustment of advance tax. The liability of the tax was about Rs. 3 Crore, out of which a sum of Rs. 4,31,36,000/- was seized and deposited by the department in the P.D. account controlled by the department. At least on the 03 occasions, requests were made for the adjustment but the department neither replied nor adjusted the amount. It is injustice to the assessee to hold on to the cash belonging to the assessee in the government account and, at the same time, charge interest for non payment of advance tax on the due date. It is clear that the assessee's application was never ....