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2014 (1) TMI 1434 - AT - Income TaxValidity of rectification order passed u/s 154 of the Act – Adjustment of cash seized against advance tax liability – Date from which adjustment would be effective – Interest charge u/s 234B and 234C of the Act – Held that:- The decision in Shri Ram S.Sarda vs. Dy.CIT[ 2011 (12) TMI 146 - ITAT RAJKOT] followed – When under the scheme of section 132B the Central Government is under obligation to pay simple interest on excess amount, the same scheme of the provision is applicable when interest is to be recovered from the assessee, may be u/s 234A, 234B or 234C - Thus, the cash seized during the course of search is required to be adjusted against taxes due including advance-tax for the purpose of computation of interest u/s 234A, 234B and 234C - the department has to adjust the seized amount towards the advance-tax from the date when it was seized and accordingly directed the assessing officer to adjust the seized cash from the date of seizure – thus, the order of the CIT(A) set aside and the AO is directed to make adjustment of payment made by the assessee towards release of seized valuables against the advance tax liability for the assessment year under consideration – decided in favour of Assessee.
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