TaxTMI 
TaxTMI 
2023 (10) TMI 543
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....of theoretical assumptions and allegations and assertions, and is therefore not in accordance with law." 3. The issue of adjustment of cash seized against the advance tax stands covered by the judgment of Hon'ble Punjab & Haryana High Court in the case of PCIT Vs. Surinder Kumar Khindri 393 ITR 479. The entire order of the Hon'ble Court is as under: "Section 132B of the Income-tax Act, 1961 - Search & seizure - Retained assets, application of Assessment year 2011-12 - Explanation 2 to section 132B inserted with effect from 1-6-2013 which restricts scope of adjustment of seized cash is not retrospective in effect [In favour of assessee] The assessee requested the Assessing Officer to adjust the cash seized during search against his excepted advance tax liability. The Assessing Officer rejected the assessee's request holding that seized cash could not be adjusted against advance tax liability as the same was not existing liability. Held that Explanation 2 to section 132B inserted with effect from 1-6-2013 which restricts scope of adjustment of seized cash is not retrospective in nature; therefore the assessee was entitled to adjustment of seized cash....
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.... of Rs. 99,00,000/- was seized from the residence and bank lockers of the respondent- assessee. vide letter dated September 15, 2010, the assessee requested the Assessing Officer to adjust the cash seized during search against his expected advance tax liability. The request of the assessee was not accepted by the Assessing Officer as the Assessing Officer was of the view that seized cash could not be adjusted against advance tax liability as the same was not existing liability. The assessee filed returned income of Rs. 3,04,23,555/- on March 30, 2012 in which Rs. 3,00,00,000/- was shown as undisclosed income. The assessee did not pay any tax as according to him, his liability to pay tax and interest on returned income was less than the amount of cash seized during search. Returned income was accepted by the Assessing Officer vide order dated February 28, 2013 under section 143(3) of the Act. Seized cash of the assessee was adjusted against the regular taxes and interest payable. Liability determined on completion of assessment order was higher than the amount of cash seized due to charging of interest under sections 234B and 234C of the Act. The Assessing Officer initiated proceedi....
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.... merit in the submission made by the learned counsel for the appellant- Revenue. The issue has already been decided by this court against the Revenue in Income Tax Appeal No. 36 of 2004 CIT v. Ashok Kumar [2012] 20 taxmann.com 432/(2011] 334 ITR 355 (Punj. & Har.) wherein it was recorded as under (page 357): "In CIT Vs. Arun Kapoor, I.T.A. No. 149 of 2003 decided on July 27, 2010- [2011] 334 ITR 351 (P & H), this court had occasion to consider similar issue where it has been held that the assessee is entitle d to adjustment of seized amount towards advance tax liability from the date of making the application in that regard. In the present case, the assessee had made request for adjustment of the advance tax liability of Rs. 3,14,312/- against the seized amount of Rs. 5,90,000/- on August 28, 1989. Since the first installment of advance tax was payable on September 15, 1989 and the re quest for adjustment having been made on August 28, 1989 and reminder on September 12, 1989, no interest was exigible under sections 234A and 234B of the Act. The Tribunal has rightly held that the assessee was entitled to adjustment of the said amount and no interest could be charged on that....
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.... Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated 12^th June, 2017 "Subject: Applicability of Explanation 2 to Section 132B of the I.T. Act, 1961 - reg. - Section 132B of the Income Tax Act 1961, provides for adjustment of seized assets/requisitioned assets against the amount of any existing liability under the Income Tax Act, 1961, (the Act), the Wealth-tax Act, 1957, the Expenditure-tax Act, 1987, the Gift-tax Act, 1958 and the Interest-tax Act, 1974, and the amount of the liability determined on completion of the assessment under section 153A of the Act and the assessment of the year relevant to the previous year in which search is initiated or requisition is made, or the amount of liability determined on completion of the assessment under Chapter XIV-B for the block period, as the case may be (including any penalty levied or interest payable in connection with such assessment) and in respect of which such person is in default or is deemed to be in default, or the amount of liability arising on an application made before the Settlement Commission under sub-section (1) ....