TMI Blog2012 (2) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... BANSAL : A.M The facts of the case are that the return filed by the assessee was processed u/s 143(1) on 02.08.2009. While doing so credit for pre-paid taxes of Rs. 4,76,834/- was granted, interest of Rs. 2,78,575/- was charged u/s 234A and interest of Rs. 2,06,144/- was charged u/s 234C of the Act. In so far as interest u/s 234A is concerned, it was charged from 01.04.2009 to 02.08.2009. The assessee moved an application u/s 154 submitting that excess interest has been charged under sections 234B and 234C. Therefore, order u/s 154 was passed on 06.11.2009. In this order, apart from credit of Rs. 4,76,834/- granted earlier, credit of Rs. 60,56,196/- was granted on account of self-assessment tax paid by the assessee. Interest of Rs. 3, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been paid in the month of September, 2009. Interest under the aforesaid provision was charged accordingly. He referred to the decision of Hon ble Delhi High Court in the case of CIT Vs. K.K. Marketing, (2005) 278 ITR 596. It has been held that the AO should have appropriated a part of the seized cash towards advance-tax payable by the assessee on the date on which such request was made and re-compute the interest accordingly. 3. Aggrieved by this order, the revenue is in appeal before us. The only substantive ground taken before us is that the ld. CIT(Appeals) erred on facts and in law in directing the AO to re-compute interest under sections 234B and 234C by adjusting a part of the seized cash towards advance-tax liability on 12.03.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s challenged before the Hon ble High Court. It was noted that the request for adjustment of seized cash towards advance-tax liability was made by the assessee before such liability became due. Therefore, it is not a case where the assessee was shirking the liability to pay advance-tax. In the circumstances, it was held that there was no error of law in the order of the Tribunal in accepting the contention urged by the assessee. A mention was made that while tax laws and equity do not always go hand in hand but in the present case, since there is nothing to prohibit the assessee from making a request for adjustment of cash, equity demands the cash ought to have been adjusted as prayed by the assessee. 5.1 When we look to the facts of this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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