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2023 (10) TMI 543 - AT - Income TaxValidity of order passed u/s 154 - adjustment of cash seized against the advance tax denied - Scope of Expl Explanation 2 to Section 132B of the Act was inserted by the Finance Act, 2013 w. e. f. 01-06-2013 - HELD THAT:- This provision restricts the scope of adjustment of seized cash, and, therefore, is to be treated as advance to the assessee - HELD THAT:- The issue of adjustment of cash seized against the advance tax stands covered by the judgment of Hon’ble Punjab & Haryana High Court in the case of PCIT Vs. Surinder Kumar Khindri [2017 (4) TMI 1104 - PUNJAB & HARYANA HIGH COURT] held Explanation 2 to Section 132B of the Act was inserted by the Finance Act, 2013 w. e. f. 01-06-2013, clarifying that " existing liability does not include advance tax payable in accordance with the provisions of Part C of Chapter XVII of the Act. However, the dispute continued on the issue as to whether the amendment was clarificatory in nature having retrospective applicability or it has only prospective applicability. Several Courts have held that the insertion of Explanation 2 to section 132 B of the Act, is prospective in nature and not applicable to cases prior to 01.06.2013. Accordingly, it has now been settled that insertion of Explanation 2 to Section 132 B of the Act shall have a prospective application and so, appeals may not befiled by the Department on this issue for the cases prior to 01.06.2013 and those already filed may be withdrawn/ not pressed upon. We hereby hold that the order u/s 154 passed by the AO is against the Circular of the CBDT and the order of the Hon’ble High Court. Suffice to say that we are unable to appreciate the hyper technicalities embarked upon by the AO as well as the ld. CIT(A) while dealing with the issue.
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