2014 (11) TMI 977

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....cts in directing the Assessing Officer by treating the amount lying in the P. D. account as advance tax of the assessee, in view of the specific provisions of section 132B(1), which are as under : (i) The amount of existing liability may be recovered out of seized amount. (ii) The Assessing Officer may apply such seized money in the discharge of the liabilities and the assessee shall be discharged of such liability to the extent of the money so applied. 2. That the learned Commissioner of Income-tax (Appeals) erred both in law and on facts in not appreciating the legal position as provided under section 132B(1) according to which advance tax liability is not included in the existing liability. 3. That the learned Commissioner of....

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....ssessment years 2008-09 and 2009-10. Again, another application was also filed. However, no adjustment of cash so seized had been made by the Department for no fault of the assessee. It was also clarified that if the assessee makes a request for adjustment of cash so seized towards the payment of advance tax, then the same shall be adjusted towards the advance tax. It was submitted that the hon'ble Punjab and Haryana High Court in the case of Arun Kapoor (supra) held that "the assessee is entitled to adjustment of seized amount towards advance tax liability from the date of making the application in that regard". It was, therefore, submitted that the assessee was entitled for adjustment and no interest could be charged. The learned Comm....

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....e utilisation of amount seized during the course of search towards advance tax liability. Further the hon'ble jurisdictional High Court in the case of CIT v. Ashok Kumar 334 ITR 355 has clearly held on similar facts that the assessee was entitled to adjustment of seized cash against advance tax liability and therefore no interest could be charged under sections 234A and 234B in the event of Department not responding to the assessee's request for adjustment of cash seized against advance tax liability. In view of the clear cut judgment of the hon'ble jurisdictional High Court, the action of the Assessing Officer in rejecting the application of the assessee under section 154A is erroneous. 5. The Assessing Officer's observa....