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2011 (11) TMI 480 - ITAT, MUMBAISearch and seizure - unexplained cash found and seized as well as the pay orders - interest u/s 234B and 234C - Held that:- It is an undisputed fact that the unexplained cash and jewellery were seized from the partners of the assessee firm and not from the assessee. Therefore, the unexplained cash and jewellery seized during the course of search and seizure action has to be adjusted against the tax liability, if any, of the partners, at the first place, and if any amount remains as surplus, the same has either to be refunded or adjusted against tax liability of the other co-assessee, if so requested/consented. The assets seized from other persons cannot be adjusted against the advance tax demand of the appellant unless their assessment is completed u/s. 143(3) and there is no liability against them. Further, request for adjustment of the amount of PD has been made by the partners after the date of payment of advance tax. Therefore, the request so made would be considered only against the regular and final tax liability of the assessee and not against the advance tax liability. Therefore, interest u/s 234B & 234C are rightly charged - Decided in favor of Revenue.
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