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TMI Blog2014 (11) TMI 1122X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the appellant." 3. The assessee filed its return of income for the assessment year 1993-94 declaring total income as Rs. 6,64,570. There was a search and seizure operation under section 132 of the Act during which Rs. 446000/- was seized. The appellant before filing return of income addressed a letter dated 18.03.1993 before the end of the previous year relevant to the assessment year 1993-94 to adjust seized cash against the liability of advance tax for the A.Y. 1993-94. The revenue issued notices dated 19.04.1994 and 09.08.1994 u/s 143(2). The revenue thereafter issued an intimation on 24.08.1994 u/s 143(1)(a) of the Act without adjusting the seized cash against advance tax liability. The assessee therefore filed appeal against the same before CIT(A) and the CIT (Appeals) dismissed the same. 3.1 On appeal before the Tribunal by the assessee, by impugned order, Tribunal dismissed the appeal and confirmed the order passed by CIT(A). Being aggrieved and dissatisfied with the impugned order passed by the Tribunal, the assessee has preferred the present Tax Appeal for consideration of the aforesaid substantial question of law. 4. Mr. S.N. Divatia, learned advocate appearing fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the period from the 1st day of April next following such financial year to the date of determination of total income under sub- section (1) of section 143 and where a regular assessment is made, to the date of such regular assessment, on an amount]] equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid as aforesaid falls short of the assessed tax. Explanation 1-In this section," assessed tax" means,- (a) for the purposes of computing the interest payable under section 140A, the tax on the total income as declared in the return referred to in that section; (b) in any other case, the tax on the total income determined under sub- section (1) of section 143 or on regular assessment, as reduced by the amount of tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in computing such total income.] Explanation 2.- Where in relation to an assessment year, an assessment is made for the first time under section 147, the assessment so made shall be regarded as a regular assessment for the purposes of this section. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 56 and the provisions of this Act shall apply, accordingly; (ii) in a case where the interest is reduced, the excess interest paid, if any, shall be refunded. (5) The provisions of this section shall apply in respect of assessments for the assessment year commencing on the 1st day of April, 1989 and subsequent assessment years.] 234C. Interest for deferment of advance tax (1) Where in any financial year,- (a) the company which is liable to pay advance tax under section 208 has failed to pay such tax or- (i) the advance tax paid by the company on its current income on or before the 15th day of June is less than fifteen per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of September is less than forty- five per cent of the tax due on the returned income or the amount of such advance tax paid on or before the 15th day of December is less than seventy- five per cent of the tax due on the returned income, then, the company shall be liable to pay simple interest at the rate of one and onehalf per cent per month for a period of three months on the amount of the shortfall from fifteen per cent or forty- five per cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of outstanding tax/interest/penalty and also to provide for recovery of taxes/interest/penalty, which may arise subsequently to the assessment pursuant to search. Accordingly, it is proposed to amend the aforesaid section so as to clarify that the existing liability does not include advance tax payable in accordance with the provisions of Part C of Chapter XVII of the Act. This amendment will take effect from 1st June, 2013. 6.3 As a result of hearing and perusal of records more particularly the application given by the assessee as well as the law laid down, we are of the opinion that the cash seized from the assessee firm, on an application given by the assessee before the end of the previous year relevant to the assessment year 1993-94, ought to have been adjusted against the liability of advance tax for the A.Y. 1993-94 by the revenue subject to payment under section 234(B) & (C) of the Act. The Tribunal has erred in placing reliance on the decision of the M.P. High Court. In this regard we are supported by the view taken by the Delhi High Court in the case of K.K. Marketing (supra) wherein it is held as under: "We are of the view that the present appeals do not raise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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