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2023 (6) TMI 39 - ITAT DELHILevy of interest u/s. 234B - cash found in the locker was seized by the Department - cash seized was in the possession of the department from the date of search itself - HELD THAT:- On a reading of section 132B of the Act, though it transpires that the assets seized can be adjusted against any existing liability under the Act and advance tax may not be an existing liability, however, in our view, self assessment tax is certainly an existing liability created on 1st April once the financial year ends. AO should have adjusted the tax liability relating to the undisclosed income declared by the assessee by way of self assessment tax on 1st April, 2019. In that eventuality, there could not have been levy of interest u/s. 234B of the Act, as interest u/s. 234B has to be computed from first day of April following the financial year, for which, advance tax was required to be paid. We must observe, in a dispute of identical nature arising in case of assessee’s brother, the Tribunal while deciding the issue in [2023 (1) TMI 522 - ITAT DELHI] has deleted levy of interest u/s. 234B of the Act by observing that the cash seized should have been adjusted against self assessment tax payable with the return of income. We hold that interest charged u/s. 234B of the Act in the peculiar facts and circumstances of the present case, deserves to be deleted. Appeal of assessee allowed.
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