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2018 (6) TMI 64 - AT - Income TaxInterest for default in payment of advance tax leviable u/s 234B - adjustment of the cash seized against the liability of advance tax request ignored - Held that:- Department seized the cash to the tune of ₹ 1,83,45,000/- and deposited in the in the P.D. Account of the company. The assessee made a request in writing dated 10.04.2012 for the adjustment of the cash seized against the liability of advance tax but the Department neither replied nor adjust the said amount of ₹ 8,45,000/-. The amount of ₹ 8,45,000/-, no doubt, it was available with the Department, and the same could have adjusted against the advance tax, therefore, the interest for default in payment of advance tax is not leviable u/s 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, interest under section 234C is not attracted as there was no deferment. The assessee is entitled to adjustment of the seized cash against advance tax liability, therefore, no interest should be charged u/s 234A, 234B, and 234C of the Act, especially when the Department has assessee's money in the P.D. account. - Decided against revenue
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