Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 731 - HC - Income TaxAdvance tax liability adjustment from the cash seized - Held that:- In view of the discussion, considering the decision of Division Bench of this Court in case of Kamlesh Bhogilal Kandoi M/s. Bhogilal Mulchand Kandoi vs. A.C.I.T (2014 (11) TMI 1122 - GUJARAT HIGH COURT) we find that the Assessing Authority was in error in not permitting adjustment of the assessee's advance tax liability against the seized cash. Interest on defaults in payment of advance tax - Held that:- Sub section (4) of section 132B of the Act is amply clear and mandates the Central Government to pay interest at the prescribed rate for the prescribed period when the amount is so withheld. Petition allowed. The Revenue shall adjust the advance tax liability on the income of ₹ 70 lacs of the petitioner as requested by him in the letter dated 29.03.2012. Resultantly, the liability to pay interest on the premise that such advance tax was paid late, would not arise. The Revenue shall also pay interest in terms of sub section (4) of section 132B on the remaining amount from out of ₹ 70 lacs after making adjustments as permissible under sub section (1) of section 132B which will include the advance tax, interest under section 234C of the Act and the penalty under section 271AAA of the Act.
|