TMI Blog2017 (6) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... zed cash as advance tax. We therefore quote this tribunal’s decision in Kanishka Prints Pvt. Ltd. vs. ACIT (2013 (7) TMI 14 - ITAT AHMEDABAD) and direct the Assessing Officer to grant the assessee the credit prayed for from the date of filing of its return only with all consequential benefits. The assessee’s grievance stands partly accepted in view of our above discussions. - Decided partly in favour of assessee. - ITA No. 1415/Ahd/2013 - - - Dated:- 25-4-2017 - SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER For The Assessee : Shri S. N. Divatia, A.R. For The Revenue : Shri K. Madhusudhan, D.R. ORDER PER S. S. GODARA, JUDICIAL MEMBER This assessee s appeal for assessment year 2009 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of ₹ 40lacs. The assessee appears to have declared undisclosed income of ₹ 7.2crores in course of the above search. The same culminating in initiation of Section 153A proceedings. The assessee filed its return on 29.09.2009 stating income of ₹ 2,10,23,030/-. The Assessing Officer thereafter framed Section 153A assessment on 08.09.2010 computing total income as ₹ 5,09,85,016/-. The assessee preferred appeal. The CIT(A) appears to have partly agreed with its grievance. The Assessing Officer then framed consequential assessment on 17.10.2011 recomputing the above taxable income to ₹ 2,92,83,090/-. The assessee filed Section 154 rectification pleading therein that it had not been given credit of pre-paid taxes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spective of the seizure of the amount, the assessee is obliged to pay the advance tax in accordance with law and if he had not paid the advance tax in accordance with the provisions of the Act, he could not avoid the liability either under section 234B or section 234C. The request of the assessee for adjustment of seized cash cannot be made against advance tax. 6. However, even if 'Advance tax liability' is accepted as an 'existing liability' for the purposes of section 132 B (1)(i) of the Act, the same needs to be determined so as to allow the AO to make the necessary adjustment. It is an undisputed fact that payment of advance tax is voluntary one. The assessee who is liable to make payment of advance tax in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to adjust the seized cash against tax liability in accordance with the provisions of section 132B of the Act. No quantification for the actual advance. liability has been made by the appellants at all. The unquantified / undetermined advance tax liability cannot be said to be an existing liability and the onus to determine / quantify such liability for the purpose of adjustment against seized cash in terms of section 132B of the Act as per appropriate installments is on the appellants only. Further, no request for adjustment of seized cash of ₹ 6,66,300/- has been made in the case of the appellant. Therefore, the advance tax liability has not been determined by the appellant at all on its current estimated income. The appellant had fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of filing the returns of income. In my opinion, the AO should have adjusted the seized cash against tax liability of the appellants which came into existence u/s 140A(3) of the Act w.e.f. date of filing of returns of income. The nonadjustment of the seized cash against the tax liability u/s 140A(3) of the Act, on the part of the AO, and charging of interest for non-payment of self-assessment tax when the corresponding amount of seized cash is in possession of Department, is against the principles of natural justice. 11. In view of the above and considering the fact that the tax liability u/s 140A(3) came into existence with effect from the date of filing of return of income, the AO is directed to verify if any request of adjustment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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