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2017 (6) TMI 178 - AT - Income TaxAdjustment of cash seized at the time of search against the advance tax liability - Held that:- is an undisputed fact that cash of ₹ 2.55 crore was seized on 06/08/2010. It is also an undisputed fact that Assessee vide letter dtd 28/09/2010, addressed to CIT(C) had requested for adjusting of seized cash against the advance tax liability for AY 2011-12. It is Revenue’s case that the seized cash cannot be adjusted against advance tax liability in view of the amendment made to Section 132B by insertion of Explanation 2 by Finance Act 2013, wherein it is stated that “existing liability” does not include advance tax payable. On the issue as to whether the insertion of Explanation 2 to s.132B by Finance Act 2013, is prospective or retrospective, we find that the Co-ordinate Bench of Ahmedabad Tribunal in the case of Kanishka Prints(2013 (7) TMI 14 - ITAT AHMEDABAD ) has observed the amendment made of s.132B by insertion of Explanation 2 is prospective and is applicable from 1st June 2013. Thus cash seized at the time of search be adjusted against the advance tax liability and as per ld. Authorised Representative submission the credit for it be given from the date of its request made to CIT(C) for adjustment of cash. We thus direct accordingly. In the result, the grounds of Assessee are allowed.
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