2010 (12) TMI 1296

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.... 2009-10. 2. The only issue raised in this appeal by the revenue is as under:- "Whether on the facts and in the circumstances of the case, the CIT(A) has erred in law on facts in directing the A.O. to recomputed the levy of interest u/s 234B and 234C by adjusting the seized cash against the advance tax liability of the assessee?" 3. In this case, a search under sec. 132 of the Act was conducted at the premises of the assessee on 19.01.2009, in the course of which a cash amounting to Rs. 90 lakh was seized. The assessee vide letter dated 12.03.2009 addressed to the Additional Director of Income-tax (Investigation), Kanpur requested to adjust the cash seized against the tax liability of the assessee as well as his associate per....

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....AO charged interest of Rs. 4,61,178/- under sec. 234B for six months. Thus, the benefit of amount seized on 19.01.2009 to be adjusted against the tax payable by the assessee was only allowed from September, 2009 only. The AO also charged interest under sec. 234C amounting to Rs. 1,15,276/-. 5. Being aggrieved with the AO's order of rectification dated 6.11.2009 passed under sec. 154 of the Act, the assessee filed appeal before the CIT(A). 6. After considering the facts of the case and submissions of the assessee and relying upon certain decisions, the CIT(A) passed the order directing the AO to adjust the seized cash against the advance tax liability from the date on which the assessee made request for the adjustment and recomputed th....

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....n dispute that the cash was seized from the assessee on 19.01.2009, and the assessee vide letter dated 12.03.2009 requested the Additional Director of Income-tax (Investigation) to adjust the cash seized against his tax liability. Thus, there is no dispute that the offer to adjust the seized cash against tax liability was made by the assessee before the advance tax liability became due in respect of the amount of instalment fallen due on 15.03.2009. Therefore, the adjustment of the cash recovered from the assessee could be made against the advance tax liability in respect of the instalment fallen due on 15th March, 2009. Respectfully following the aforesaid decision of coordinate Bench of ITAT in the case of Nikka Mal Babu Ram (supra) and t....