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2015 (3) TMI 543 - HC - Income TaxInterest under Section 234A, 234B & 234C - default in payment of advance tax - cash seized in the course of search - Adjustment to the cash lying in the P.D. account against the advance tax - Tribunal deleted interest observing that the cash belongs to the assessee was already in the government account so there is no question to charge the interest - Held that:- As during the search, a huge cash was recovered. The assessee, while making statement under Section-134 of the Income Tax Act, offered to pay the tax on an undisclosed income of ₹ 10 Crore for which the tax would come to approve ₹ 3 Crore but the cash amount of ₹ 4,31,36,00/- was already available with the department which was deposited in the P.D. account. The assessee made a number of request from time to time for the adjustment of the cash seized against the liability of the advance tax, but the department neither replied nor adjusted the said amount. No doubt that before the due date, the cash was available with the department. The same could have been adjusted against the advance tax. The return was filed on or before the due date so the interest for default in furnishing the return of income under Section-234A was not desirable. Similarly, the interest for default in payment of advance tax is also not leviable under Section-234B for the reason that assessee had already made a request for adjustment of the amount against the advance tax which was already in the custody of the department. Similarly, Section-234C is not attracted as there was no deferment. See CIT Versus Ashok Kumar [2010 (9) TMI 771 - Punjab and Haryana High Court] and CIT vs. Kesar Kimam Karyalaya [2005 (5) TMI 58 - DELHI High Court ] - Decided against revenue.
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