Cash Seized during search can be adjusted against Advance Tax

Cash seized during search can be adjusted against advance tax liability

[2015] 56 taxmann.com 409 (Chandigarh - Trib.)

IN THE ITAT CHANDIGARH BENCH 'B'

Assistant Commissioner of Income-tax

v.

Hans Raj Gandhi

Section 234B of the Income-tax Act, 1961 - Advance tax - Interest, chargeable as (Adjustment of seized cash) - Assessment year 2008-09 - A search was carried out at assessee's premises in course of which certain cash was seized - Assessee requested that advance tax payable in respect of assessment year might be adjusted out of cash seized - Assessing Officer rejected assessee's request and thereafter, charged interest under section 234B - He also refused to follow judgment of Punjab and Haryana High Court in case of CIT v. Arun Kapoor [2011] 334 ITR 351/[2012] 20 taxmann.com 431 on ground that revenue had filed a special leave petition against said decision - Commissioner (Appeals) reduced interest under section 234B holding that only because revenue filed a special leave petition did not mean that said decision would not be law of Land - Whether there was no infirmity in order of Commissioner (Appeals) - Held, yes [Para 4][In favour of assessee]