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2014 (4) TMI 247 - HC - Income TaxAdjustment of tax liability u/s 132B post search to save interest liability - undisclosed income - request made by the petitioners for the sale of gold bars weighing 6 kilograms seized on 10 December 2013 for adjustment "towards the automatic tax liability" of the first petitioner has been rejected. – Assessee contended that once they have disclosed an undisclosed income of ₹ 12.01 crores, the tax liability would work out to ₹ 3.60 crores being 30% of the surrender amount and after adjusting the value of the gold bars a balance of ₹ 1.78 crores would be the balance and payable to the revenue towards tax and undisclosed income - Held that:- The conditions specified in the first proviso, are clearly not attracted - The AO was justified in his conclusion that it is only when the liability is determined on the completion of the assessment that it would stand crystallized and in pursuance of which a demand would be raised and recovery can be initiated - the application filed by the assessee was throughly misconceived and unsustainable with reference to the provisions of Section 132B(1) of the Act - Any action which the Court may direct in respect of an asset, which has been seized, has to be strictly in compliance of Section 132B of the Income Tax Act - Where a case has not been made out within the four corners of Section 132B, the Court would not be justified in passing a general order of a nature that is sought, beyond the scope and purview of the statutory provision – thus, there is no need for interference in the order of the Tribunal – Decided against Assessee.
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