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2013 (4) TMI 310 - AT - Income TaxAdjustment of tax on the date of seizure ignoring the interest to be allowed to the assessees u/s.234A, 234B and 234C - For the AY 2009-10, the assessee was required to file the return under the Income-tax provisions when it was prayed that the income returned by the assessee includes the income so considered by the assessing authorities having already suffered tax - - Held that:- When the AO soumoto could adjust the liability existing on the basis of self assessment tax which self assessment tax partakes the tax liability the AO was stopped short of charging of interest u/ss.234A, 234B and 234C when the assessee as of now has pointed out for the period of the liability for advance tax was not for a completed month therefore cannot be charged to the extent that a delay of 8 days may be considered as part of the period when the interest u/s.234C may be charged. See CIT v. Kesr Kimam Karyalaya (2005 (5) TMI 58 - DELHI HIGH COURT) wherein held that when a search is carried out on a business group as a whole to request made by partners were binding on the group when the request for adjustment was not to be doubted by the assessing authorities for adjusting the liability of tax , if any, on the partners against the cash seized. Also Satpaul D.Agarwal (HUF) v. ACIT [1997 (11) TMI 487 - ITAT MUMBAI] wherein held that the amount so adjusted should be treated as advancer tax for the purpose of computation of interest u/ss.234A, 234B and 234C insofar as the claim for non-levy of interest there under is an appealable issue. Also see Vishwanath Khanna v. Union of India (2011 (6) TMI 146 - DELHI HIGH COURT] seizure of cash which the assessee was entitled to interest on the amount which became refundable after giving effect on the basis of the order of the AO insofar as the assessee would be entitled to interest u/s.244A from the date of the amount held by the Revenue in their account of seizure. Thus set aside the orders of the CIT(A) and direct the AO to grant interest u/s.234A, 234B and 234C on the demand so raised against the amount adjusted by him from the date of seizure as prayed for by the assessee - in favour of assessee.
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