TaxTMI 
TaxTMI 
2015 (3) TMI 1280
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....e amount of Rs. 80,00,000/- seized during search as advance tax ignoring 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 Ld. CIT(A) erred both inlaw and on facts in not appreciating the legal position as provided u/s 132B(1) according to which advance tax liability is not included in the existing liability. 3. That the Ld. CIT(A) failed to appreciate the fact that the section 132B(1) is very clear that the seized or relinquished assets may be dealt wi....
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.... does not include advance tax is effective for 01.06.2013. He also referred to the decision of Hon'ble Jurisdictional of High Court in case of CIT v/s Ashok Kumar 334 ITR 355. 5. Before us Ld. DR submitted that explanation to section 132B was inserted by Finance Act 2013 with effect from 01/06/2013 but since explanation was of clarificatory nature therefore same should be construed having retrospective application. 6. On the other hand Ld. Counsel for the assessee referred to the notes on clauses and submitted that it has been clearly mentioned that amendment will take effect from 01/06/2013 therefore it cannot be applied to earlier period. Further in view of the decision of Hon'ble Punjab & Haryana High Court in case of CIT v/s Ashok Kum....
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....ment of seized cash towards advance tax liability. It is however to be noticed that the assessee had made application for adjustment of seized cash on 22.03.2010 i.e. one week after the date of deposit of advance tax i.e. 15.03.2010 and therefore the onus to make the impugned adjustment cannot be put on the Assessing Officer. The facts of the case under consideration are therefore little different in this regard. It however remains fact that at the time of filing of the return of income the self assessment tax could have been taken out of the seized cash of Rs. 80,00,000/- leading to reduction in the imposition of interest u/s 234B/C. 3. The amendment to section 132B in Finance Act 2013 has also been considered while deciding the appeal u....