TaxTMI 
TaxTMI 
2015 (7) TMI 352
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....he following grievance:- "1. That the Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 1,70,233/- made out of disallowances in various heads of expenditure without appreciating the facts brought on record." 3. So far as this grievance of the assessee is concerned, relevant material facts are like this. The assessee was subjected to search and seizure operation. During the course of resultant assessment proceedings, the Assessing Officer noted that while the assessee has produced books of accounts, and bills and vouchers in support of various expenses, "on examination of bills and vouchers, it is seen that some of the vouchers are handmade, and, therefore, considering a fair and reasonable view, 10% of the....
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.... any specific cases where such expenses are not incurred for the purpose of business, the disallowance is indeed unsustainable in law. We approve learned CIT(A)'s order on this issue. 6. Ground No.1 is thus dismissed. 7. In Ground no.2, the Assessing Officer has raised the following grievance:- "2. That the Ld. CIT(A) has erred in law and on facts in directing the assessing officer to appropriate the cash seized during the course of search against the advance tax liability and in consequence thereto delete the statutory interests charged u/s 234A, 234B & 234C amounting to Rs. 30,90,449/-, Rs. 64,89,943/- and Rs. 11,34,025/- respectively ignoring the legal provisions as contained in section 132B read with Explanation-2 as appearing ....
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....e cash being seized by the department, the appellant requested the department to adjust Rs. 3 crore out of the Rs. 4,31,36,000/- seized and deposited in the PD account. It is seen that the assessee made a written request on 29.03.2010 to the Chief Commissioner of Income Tax which was duly received and also to the Additional Director of Income Tax Investigation, Agra. It also seen that similar request for adjustment letters were written to the DCIT Circle-1, Agra on 29.03.2010 which was duly received in the office on the same day. Further, another letter was written to the CIT-1 on 21.03.2010. Letter dated 05/07/2010 was also written to the DCIT Central Circle stating that return of income for A.Y. 2010-11 had been filed on 30/6/10 with tax ....
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.... the advance tax liability. The Hon'ble High Court of Punjab & Haryana in the case of CIT Vs. Ashok Kumar reported in 334 ITR 355 has also 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 u/s 234A & 234B in the event of the department no responding to assessee's request for adjustment of cash seized against advance tax liability. In view of the following judgments, the action of the AO in charging interest under 234A, 234B & 234C is not justified and hence, directed to be deleted." 9. The Assessing Officer is aggrieved of the relief so granted by the CIT(A) and is in appeal before us. 10. Having heard the rival contentions and ha....