TMI Blog2013 (7) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... towards advance tax liability of assessee and credit should be given credit there from the date of seizure of money has been decided in favour of the assessee by the decision Shri Ram S Sarda v. DCIT [2011 (12) TMI 146 - ITAT RAJKOT]. - Decided against the revenue. - IT(SS)A No.570/Ahd/2011 - - - Dated:- 23-3-2012 - Shri A. K. Garodia And Shri Kul Bharat,JJ. For the Appellant : Shri Vinod Tanwani, SR-DR For the Respondent : Shri P. M. Mehta, AR ORDER Per Kul Bharat, Judicial Member:- This present appeal by the Revenue is directed against the order of Ld. dated 26-08-2011 passed by the Commissioner of Income-tax (Appeals)-I, Ahmedabad. 2. The facts in brief are that a search operation u/s 132(1) of the Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tifiable u/s.154. 3. The Revenue feeling aggrieved by the order of Ld. CIT(A) has raised the following grounds for determination:- 1) The Ld. CIT(A) has erred in law and on facts in holding that there was no mistake rectifiable u/s.154 of the Act and further directing the AO to consider credit for cash seized from the residence of the Director of the assessee while charging interest u/s.234B of the Act from the date of filing of return by the assessee. 2) On the facts and in the circumstances of the case in law, the CIT(A) ought to have upheld the order of the A.O. 4. Since both the grounds are interconnected are taken up together for disposal. 5. Ld. DR vehemently argued that the order passed by Ld. CIT(A) is erroneous and stro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entative. The issue required to be decided in this case is that whether the money seized during the search operation can be treated as advance tax from the date of its seizure. It would be appropriate if the relevant provisions of law is reproduced herein for the sake of clarity. 132B(1) The assets seized under section 132 or requisitioned under section 132A may be dealt with in the following manner, namely:- (i) the amount of any existing liability under this Act, the Wealth-tax Act, 1957 (27 of 1957), the Expenditure-tax Act, 1987 (35 of 1987), the Gift-tax Act, 1958 (18 of 1958) and the Interest-tax Act, 1974 (45 of 1974), and the amount of the liability determined on completion of the assessment [under section 153A and the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the liabilities referred to in clause (i) and the assessee shall be discharged of such liability to the extent of the money so applied. It is evident from a bare reading of the aforesaid provisions that the existing liability under the Income-tax can be discharged from the assets or money seized. In the present case, the search operation was conducted on 22-09-2005 and the assessee filed return on 31-05-2006 declaring the seized money as income. In our opinion, if the assessee has declared income during the year under consideration in that eventuality he is liable to pay advance tax as per law therefore the Assessing Officer is required to find out whether such liability was existing on the date of seizure. If such liability is existing t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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