TaxTMI 
TaxTMI 
2016 (10) TMI 1399
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....assessee. 2. Whether on the facts and the circumstances of the case the ld. CIT(A) was right in treating the appeal maintainable u/s. 249(4) of the I.T. Act without appreciating the fact that amount lying in the PD account cannot be adjusted against the existing liability of the assessee and as per explanation-2 of the Section 132B of the I.T. Act the 'existing liability' doesn't include the advance tax payable in accordance with the provisions of Part-C of Chapter-XVII." 3. Whether on the facts and the circumstances of the case the ld. CIT(A) was right in ignoring the instruction F. No. 286/108/2005-IT (Inv-II) dated 13-07-2006 wherein it has been clarified that seized cash can't be adjusted against the advance tax liab....
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.... cash found in the locker was received as sale proceeds of 20 gold biscuits (sold in April 2011). The assessee admitted in the sworn statement recorded on oath u/s. 132(4) of the Act that all valuables and cash which were found inventorised and seized from this locker belonged to her. Accordingly, the assessee surrendered a sum of Rs. 3,30,41,880/- (jewellery valued at Rs. 2,84,19,330/- and cash amounting to Rs. 46,22,500/- refer pg 2 of the assessment order) as her undisclosed income for the A.Y. 2012-13. However, assessee e-filed her return of income declaring total income at Rs. 2,71,91,880/- (inclusive of valuables and cash inventorised from the locker at Rs. 2,71,91,880/- on 3-08-2012 for the A.Y. 2012-13). Later on, AO completed the....
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....he meantime assessee also filed an application u/s. 154 of the Act for rectification of demand notice wherein credit of seized cash lying in PD A/c. was not allowed for advance tax adjustment. However, AO vide the order passed u/s. 14 of the Act dated 30-09-2014 has rejected assessee's application dated 20-03-2014." It is noted from the records that the ld. CIT(A) had allowed the appeal of the assessee in view of the decision dated 28-02-2014 of ITAT Agra Bench in the case of ACIT vs. Sunil C Gupta in ITA No. 290/Agra/2013 wherein the Hon'ble Bench held that cash seized to be adjusted against advance tax liability as Explanation 2 to Section 132B of the Act is enacted w.e.f. 1st June, 2013 and in this case the ITAT upheld the obser....
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.... Central Circle stating that return of income for A.Y. 2010-11 had been filed on 30/6/10 with tax payable of Rs. 2,92,25,240/- and therefore requesting the AO once again for adjustment of tax liability with the cash lying in the PD account. In the circumstances, the assessee had done all it could do so as to ensure that cash lying in the PD account would be adjusted towards the advance tax liability. However, it seen that no action was ITA No. 290/Agra/2013 A.Y. 2010-11 taken on the assessee's petition by any of the authorities before whom the assessee has filed the petition. To my mind, it is an apparent injustice to the appellant to hold on the cash belonging in the assessee in the Government Account and at the same time charge intere....