TaxTMI 
TaxTMI 
2023 (5) TMI 630
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....ereinafter referred to as Act) dated 31.03.2016 by the Ld. Dy. CIT, Delhi (hereinafter referred to as ld. AO). 2. Ground No. 2 raised by the assessee is seeking credit for cash in sum of Rs. 1.76 crores which was seized by the Income Tax Department at the time of search. 3. We have heard and rival submission and perused the materials available on record. 4. The assessee is an individual and had filed its return of income for AY 2015-16 on 31.08.2015 declaring total income of Rs. 11,33,54,240/-. A search and seizure action u/s 132 of the Act was carried out on 27.05.2014 on the car bearing registration No. DL3 CBE3592. The search authorization was issued in the name of assessee and Shri Achyut Kumar Gupta. At the time of search in the sai....
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..../- comprising of TDS of Rs. 1,61,71,260/-, advance tax of Rs. 35,00,000/- and self assessment tax of Rs. 12.40.096/-. The assessee requested for adjustment of the seized cash of Rs. 1.76 crores towards self assessment tax payable by the assessee. This claim was made by the assessee in the return of income filed on 31.08.2015 itself. The ld AO while completing the assessment u/s 143(3) of the Act (being the year of search) on 31.03.2016 made a small addition of Rs. 1,83,500/- and determined the total income of the assessee at Rs. 11,35,37,740/-. In the said assessment, the ld AO did not give credit for tax in the form of seized cash of Rs. 1.76 crores and accordingly raised a demand of Rs. 2,09,68,576/- which includes interest u/s 234B of Rs....
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....nable to comprehend ourselves to accept to the action of the lower authorities in the instant case. No doubt, in the rectification application made by the assessee u/s 154 of the Act, the assessee had erroneously requested the ld AO to treat the seized cash of Rs. 1.76 crores to be adjusted towards advance tax payable. This is infact not in consonance with provisions of Explanation 2 to section 132B of the Act. However, this rectification application arose from the order u/s 143(3) of the Act dated 31.03.2016 passed by the ld AO wherein, the ld AO had failed to give credit for treatment of seized cash of Rs. 1.76 crores as self assessment tax. In other words, seized cash of Rs. 1.76 crores was not given credit by the ld AO in the assessment....