TMI Blog2014 (11) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... use the special leave petition of the Department is pending before the hon'ble Supreme Court, is no ground to show disregard to the judgment of the hon'ble High Court. The authorities below are bound to follow the decision of the hon'ble High Court. Accordingly, there is no infirmity in the order of the learned Commissioner of Income-tax (Appeals) in deciding the issue in favour of the assessee by following the judgment of the hon'ble jurisdictional High Court - Decided against Revenue. - ITA NO. 739/CHD/2014 - - - Dated:- 18-11-2014 - SHRI BHAVNESH SAINI AND SHRI T.R.SOOD, JJ. FOR THE APPELLANT : SHRI RAJIV KUMAR, DR FOR THE RESPONDENT : SHRI SUDHIR SEHGAL ORDER Bhavnesh Saini, J.M. : This appeal filed by the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 234B of the Income-tax Act by not allowing credit for the amount seized during the course of search before the learned Commissioner of Income-tax (Appeals). The Assessing Officer in the order passed under section 154 of the Income-tax Act did not accept the claim of the assessee for non-levy of interest under section 234B on the ground that as per the provisions of section 132B of the Income-tax Act seized cash could not be adjusted against the advance tax liability. The Assessing Officer also refused to follow the judgment of the Hon'ble jurisdictional High Court in the case of CIT v. Arun Kapoor 334 ITR 351 on the ground that the Department had filed a special leave petition against the said decision. 3. It was submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the cash seized at the time of search operation had been requested by the appellant to be adjusted against his advance tax liability and the said request had been made twice in writing but no action on the same was taken by the Assessing Officer. It is manifest injustice to hold on to the cash belonging to the assessee in the Government account and at the same time charge interest for non-payment of advance tax on the due dates. It is quite apparent that the seized cash should have been adjusted as requested by the assessee to meet the advance tax obligations in this regard. The hon'ble Bombay High Court in the case of CIT v. Shri Jyotindra B. Mody in order dated September 21, 2011, has clearly held that once the assessee offers to ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the hon'ble apex court. The Assessing Officer is therefore directed to accept the application of the appellant and reduced the interest under section 234B accordingly. 4. On consideration of the rival submissions, we do not find any infirmity in the order of the learned Commissioner of Income-tax (Appeals) in directing the Assessing Officer to reduce the interest under section 234B of the Income-tax Act. It is not in dispute that the assessee made a request for adjustment of cash so seized towards advance tax instalments. The issue is now settled by the hon'ble Punjab and Haryana High Court in favour of the assessee in the case of Arun Kapoor (supra). Merely because the special leave petition of the Department is pending befo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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