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2017 (9) TMI 1884 - ITAT PUNELevy of interest u/s. 234B and interest u/s. 234C - search and seizure action on the assessee u/s. 132 - Revenue adjusted the seized cash against the regular tax demand - inclusion of the advance tax liabilities within the meaning of the 'existing liabilities' as used in the provision to section 132 B of the Act read with its Explanation- 2 to said section for the period prior to the amendment - HELD THAT:- Assessee has taken this issue to the judicial forum which eventually decided issue in favour of the assessee, and the judgment in the case of Spaze Towers (P.) Ltd. [2016 (11) TMI 1401 - PUNJAB AND HARYANA HIGH COURT] has brought requisite clarity on the issue. Therefore, for the period prior to the amendment, the 'existing liability' includes the "advance tax liability" in accordance with the provisions of part C of chapter XVII of the Act. Subsequently, accepting the above judgment, the CBDT issued direction to Field Officers by way Circular No.20/2017 dated 12/06/2017. Therefore, the issue is now settled and the expression 'any existing liabilities' does include the advance tax liabilities prior to 01.06.2013. The case of the assessee falls prior to the said date of 01.06.2013. The cash was seized in the search initiated on 06.01.2010. Assessee requested for adjustment of the same towards the advance tax liabilities vide his letter dated 11.03.2010. Considering the above legal position in the matter and facts of the present case, we are of the opinion, the Ground Nos. 1 to 3 raised by the assessee have to be decided in his favour and against the Revenue.
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