TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 957
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....referred to as 'the Act') dated 04.07.2017 by the Assessing Officer, ACIT, Circle-13 (2), New Delhi (hereinafter referred to as 'ld. AO'). 2. The assessee has raised the following grounds of appeal before us:- "1. That under the facts and circumstances, the application u/s. 154 dated 06.04.2015 since, was mandated to be disposed off on or before 31.10.2015, however disposed off vide order dated 03./04-07-2017, thus impugned order barred by limitation and unsustainable in law, consequently, the application dated 06.04.2015 should be deemed to have been accepted and accordingly interests u/s. 234A & 234B should be correctly calculated by deeming the payment of Rs. 74,44,694/- being made on 11.04.2012. 2. That under the facts, the payment....
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....ent of seized fixed deposits as claimed by the assessee in the return of income and proceeded to raise a demand on the assessee charging interest u/s 234B of the Act till 31.03.2015. The assessee filed rectification petition u/s 154 of the Act before the ld AO on 06.04.2015, which was disposed of beyond the time limit prescribed u/s 154(8) of the Act on 04.07.2017, rejecting the claim of the assessee on the following two grounds: - a. the return of income was filed by the assessee belatedly u/s 139(4) of the Act and hence, the assessee's claim cannot be accepted. b. the assessee vide letter dated 11.04.2012 had sought adjustment of seized fixed deposits with the advance tax liability of the assessee and since the financial year itself h....
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.... financial year could only be construed as advance payment of self assessment tax. In the instant case, the assessee had made a request for adjustment of seized fixed deposits towards the tax liability in terms of section 132B of the Act on 11.04.2012 itself. Obviously, that request had to be construed only towards payment of self assessment tax liability, dehors the actual date of filing of return of income. The most excruciating fact in this appeal is that the assessee though had made a request while filing the belated return of income on 26.03.2013 had indeed sought for adjustment of seized fixed deposits with the self assessment tax liability, the entire orders of the lower authorities are completely silent on this issue, in as much as ....
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....cordingly raised a demand of Rs. 2,09,68,576/- which includes interest u/s 234B of Rs. 22,46,633/-. The assessee filed a rectification application u/s 154 of the Act wherein, the assessee made a request to treat the seized cash of Rs. 1.76 crores as advance tax payable for AY 2015-16 and accordingly requested for recalculating the interest u/s 234B of the Act. This rectification application is enclosed at page No. 24 of the paper book. The ld AO disposed off the rectification application filed u/s 154 of the Act against assessee by applying the provisions of Explanation 2 to section 132B of the Act. For the sake of convenience, the said provision is reproduced herein below:- "Application of seized or requisitioned assets. 132B. (1) The ....
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.... seized cash of Rs. 1.76 crores was not given credit by the ld AO in the assessment framed u/s 143(3) of the Act dated 31.03.2016. It is not in dispute that the assessee had indeed made a claim for adjustment of seized cash of Rs. 1.76 crores with his self assessment tax payable by the assessee along with return of income on 31.08.2015 itself. This was conveniently ignored by the lower authorities. From the bare reading of provisions of section 132B of the Act together with Explanation 2 thereon, there is no prohibition to adjust the seized cash with self assessment tax. What is prohibited is only adjustment of seized cash with the advance tax. Hence, we hold that the assessee is entitled for adjustment of seized cash of Rs. 1.76 crores wit....