2023 (6) TMI 39

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.... On 01.12.2018, a search and seizure operation u/s. 132 of the Act was conducted in case of Faquir Chand Lockers and Vaults Pvt. Ltd. In course of search and seizure operation, Investigation Wing found locker No. 168 in the name of the assessee. On opening of the said locker, cash amounting to Rs.1,07,00,000/- was found. When the assessee was called upon to explain the nature and source of cash found, the assessee could not explain the same and the assessee offered the amount as income. The cash found in the locker was seized by the Department. Subsequently, the assessee filed his return of income on 07.07.2019 declaring income of Rs.4,71,290/-. In course of assessment proceedings, when the Assessing Officer called upon the assessee to expl....

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....n the return of income filed for the impugned assessment year, the assessee could not include the amount of cash seized as income, as the departmental system did not accept the return without payment of self assessment tax. He submitted, since, the assessee did not have liquidity to discharge the tax liability, he communicated to the Assessing Officer offering the said cash seized as income and requested the Assessing Officer to adjust the tax due from the cash seized. He submitted, since the cash seized was in the custody of the department from the date of search on 01.12.2018 and the assessee had offered the cash seized as income, the Assessing Officer should have adjusted the self assessment tax payable from the cash seized in terms with....

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....s appears from the copy of Form-26AS furnished before us at the time of hearing, the tax due was adjusted from the cash seized only on 09.07.2021. 7. Undisputedly, the cash seized was in the possession of the department from the date of search itself, i.e., 01.12.2018. It is a fact that the assessee has also requested the Assessing Officer to adjust the self assessment tax liability on the income declared of Rs.1,07,00,000/- from the seized amount. However, assessee's request was never accepted. On a reading of section 132B of the Act, though it transpires that the assets seized can be adjusted against any existing liability under the Act and advance tax may not be an existing liability, however, in our view, self assessment tax is certain....