AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (3) TMI 1241
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....-12 reversing Assessing Officer's in deleting an identical unaccounted cash receipt addition of Rs. 80 lacs made in assessment order of the same date given hereinabove. The relevant proceedings in both these appeals are u/s. 143(3) r.w.s. 153B of the Income Tax Act, 1961; in short "the Act". The latter assessee in its appeal ITA 2294/Ahd/2012 challenges action of both the lower authorities in treating cash seized of Rs. 80 lacs advance tax and consequently not granting any relief towards wrong charging of interest u/s. 234A, 234B and 234C of the Act. 2. We come to Revenue's two appeals first seeking to restore unaccounted cash receipts additions indicated hereinabove. Both these assessees are companies engaged in real estate, property development and construction business activities. The department carried out the impugned search in their cases on 04-03-2010 inter alia seizing cash sums of Rs. 74 lacs and Rs. 80 lacs from bank locker nos. 96 and 102, HDFC Bank, Punchvati branch, Ahmedabad respectively. These assessees filed their returns on 15-11-2011 and 17-10-2011 declaring income of Rs. 32,75,660/- and Rs. 1,74,17,600/-; respectively. The Assessing Officer took up scrutiny. He....
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.... in the above matter is found to be verifiable from the cash flow statement as well as the seized materials. Hence, the same are allowed to be capitalized. In this connection, it may be mentioned that a sum of Rs. 74,00,000/- was found and seized from locker No.96, in HDFC Bank, Panchvati Branch, Ahmedabad, which stood in the name of B. Nanji Enterprises Ltd.. The applicant had claimed before the search party that the above cash belonged to him. The applicant has incorporated the above cash in the cash flow statement filed alongwith the SOF. However, it is found that in the assessment order passed in the case of M/s. B. Nanji Enterprises Ltd, the Assessing Officer has brought the above amount to tax in the hands of the above company. It is stated by the A.R. that the CIT(A) has deleted the above addition mainly on the ground that the applicant had owned up the above amount and its assessability in his hands before the Department as well as in the Settlement Application. Since, we are not aware of the final decision taken by the Department on The CIT(A)'s order in the above matter, the applicant's claim for capitalization of the above amount is not considered in the present order.....
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....serve in these peculiar facts and circumstances that not only assessment of an income is of paramount importance in scrutiny proceedings, but also it is equally significant that the same has to be done in the hands of the right assessee. We are of the view in these facts that the ld. co-ordinate bench decision does not deal with an identical situation wherein the said assessee had satisfactorily proved the cash seized to be belonging to the company as against the instant one. It stands distinguished accordingly. We hold that it is the assessee only who is the rightful owner of the cash seized from its bank locker hereinabove in absence of any exception being pointed out. We conclude that the unaccounted cash seized sum of Rs. 74 lacs belonged to the assessee only and the same deserves to be assessed in its hands as against that in Shri Bhikubhai's case. We accept Revenue's arguments seeking to revive Assessing Officer's action. It is made clear that the assessing authority shall ensure that the same amount is not taxed twice. Revenue's appeal IT(SS)A 446/Ahd/2012 is accepted. 9. We come to Revenue's appeal IT(SS)A 451/Ahd/2012 in case of second assessee M/s. Shiddhi Vinayak Buildc....
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.... cash seized, Rs. 10 lacs be treated towards payment of advance tax in the case of assessee and similarly balance of Rs. 33 lacs be treated towards payment of advance tax in case of family members/group companies. It is also a fact that vide aforesaid letter, the Assessee had requested that cash of Rs. 8 lacs be considered as advance tax in the case of Shreeji Prints P. Ltd. The co-ordinate Bench of Tribunal in the case of Shreeji Prints (ITA No 359/Ahd/2012 - order dated 20.4.2012) decided in favour of Assessee by holding as under: It is evident from a bare reading of the aforesaid provisions that the existing liability under the Income-tax can be discharged from the assets or money seized. In the present case, the search operation was conducted on 22-9-2005 and the assessee filed return on 31-5- 2006 declaring the seized money as income. In our opinion, if the assessee has declared income, during the year under consideration in that eventuality he is liable to pay advance tax as per law therefore the A.O. is required to find out whether such liability was existing on the date of seizure. If such liability is existing then he is empowered to apply/adjust the money seized in disc....
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....pplied) namely:- Explanation 2.-For the removal of doubts it is hereby declared that the "existing liability" does not include advance tax payable in accordance with the provisions of Part C of Chapter XVII.'. The explanatory memorandum to the Finance Bill reads as under:- The existing provisions contained in section 132B of the Income-tax Act, inter alia, provide that seized assets may be adjusted against any existing liability under the Income Tax Act. Wealth tax Act, the Expenditure-tax Act, the Gift-tax Act and the Interest tax Act and the amount of liability determined on completion of assessments pursuant to search, including penalty levied or interest payable and in respect of which such person is in default or deemed to be in default. Various courts have taken a view that the term " existing liability" includes advance tax liability of the assessee, which is not in consonance with the intention of the legislature. The legislative intent behind this provision is to ensure the recovery of outstanding tax/interest/penalty and also to provide for recovery of taxes/ interest /penalty, which may arise subsequent to the assessment pursuant to search. Accordingly, it is p....