TaxTMI 
TaxTMI 
2005 (5) TMI 58
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....003 while in the case of M/s. Kesr Kimam Karyalaya, the Revenue has filed Income-tax Appeal No. 11 of 2003. The assessment year in both the appeals is the same, that is, 1994-95, In respect of this assessment year, the assessees were required to pay the first instalment of advance tax on September 15, 1993, while the next two instalments were due on December 15, 1993, and March 15, 1994. A search was carried out in the premises of the assessees in August, 1993. During the search, a large amount of cash was recovered and so, when payment of advance tax was becoming due in September, 1993, the assessees wrote to the Department that the cash seized may be adjusted towards advance tax. This request was reiterated in December, 1993, also. On ....
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.... a request for adjustment of the seized cash before the date on which advance tax became due. It was also noted that ultimately the liability of the assessees towards advance tax was less than the amount found refundable to them. It was also noted that since the question of charging interest under sections 234B and 234C of the Act was highly debatable, it would be appropriate not to charge interest from the assessees. Before us, learned counsel for the Revenue contended that substantial questions of law arise for consideration inasmuch as both the assessees were liable to pay interest under the provisions of sections 234B and 234C of the Act. It was also contended that cash belonging to the partners of the assessees could not be adjusted a....