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2017 (7) TMI 573 - AT - Income TaxRectification application - not giving benefit of seized cash for the tax dues and on account of charging of interest under section 234B and 234C - Held that:- It is not in dispute that the search was conducted on the assessee on 30.6.2010 and cash amounting to ₹ 1 crore was seized on that date. It is also not disputed that the assessee had made a request, vide letter dated 23.8.2010 and reminder dated 4.7.2011, for adjustment out of the seized amount towards advance tax liability in respect of assessment year under consideration. We find that the issue of adjustment of seized amount towards advance tax liability has been settled by the Jurisdictional High Court in the case of the assessee in the case of CIT Vs. Ashok Kumar [2010 (9) TMI 771 - Punjab and Haryana High Court] and CIT Vs. Arun Kapoor (2010 (7) TMI 610 - Punjab and Haryana High Court) wherein it has been held that the assessee is entitled to adjustment of seized amount towards advance liability from the date of making the application in that regard. Explanation-2 to section 132B of the Act is prospective in nature applicable w.e.f. 1.6.2013 and is not applicable in the present case, since search was conducted on 30.6.2010. What emerges from the above is that as per the above decisions of the Jurisdictional High Courts, the cash seized is to be adjusted against the advance tax liability of the assessee from the date of making of application. In view of the decisions of the Jurisdictional High Court as above, this is the settled position of law on the issue at hand. Thus, we find that by not adjusting the same in the present case, an apparent error has occurred in the intimation of the assessee under section 143(1) of the Act which ought to be rectified. In view of the above, we direct that the seized cash be adjusted against the advance tax liability of the assessee from the date of making application to this effect, and necessary adjustment be made as a consequence to the interest to be paid under section 234B and 234C of the Act. - Decided in favour of assessee.
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