TaxTMI 
TaxTMI 
2018 (4) TMI 338
X X X X Extracts X X X X
X X X X Extracts X X X X
....2014 for the Assessment Year 2011-12. 2. The only issue involved is whether the seized cash of Rs. 66,80,000/- on 23.04.2011 is eligible to be given credit before charging interest u/s 234A and 234B of the Act, in the facts and circumstances of the case. 3. The brief facts of this issue is that there was a search & seizure operation on 23.04.2011 by the Police Department during the election period and cash of Rs. 66,80,000/- was seized thereon. The said cash was handed over by the Police Department to the Income Tax Department u/s 132A of the Act. The assessee vide letter dated 14.07.2011 before the DDIT(Inv.), Unit-IV(1), Kolkata agreed to offer the seized cash as his undisclosed income towards the unexplained creditors and other liabili....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. 66,80,000/- as undisclosed income on 23.04.2011 for the assessment year 2011-12. There was no tax liability as on the date of the cash seized. The appellant has furnished the return of income u/s 139(1) on 27.03.2012 admitting the seized cash as his undisclosed income which resulted into the self assessment tax payable. Hon'ble ITAT, Kolkata, "B" Bench in the order cited (supra) held that the action of the assessee in seeking to adjust the seized cash with self assessment tax payable along with the return of income is in order and in accordance with section 132B of the Act as admittedly self assessment tax payable becomes 'existing liability' on the part of the assessee to settle. Respectfully following the decision of Hon'ble ITAT, K....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... had not made any payment towards self-assessment tax but had only pleaded to appropriate the same out of seized cash available with the Department from 23.04.2011 onwards. According to the assessee, once the seized cash is adjusted towards taxes payable by the assessee on the assessed income, there will be no tax that will be left, in order to be eligible to be charged with interest u/s 234A and 234B of the Act. We find that the assessee had already made 132(4) disclosure statement before the DDIT(Inv.) vide letter dated 13.07.2011 filed on 14.07.2011 giving his acceptance for offering of Rs. 66,80,000/- as undisclosed income and giving his consent for appropriation of the said seized cash towards the tax liability for the Assessment year ....