TMI BlogApplicability of Explanation 2 to Section 132B of the I.T. Act, 1961- reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... - Section 132B of the Income Tax Act 1961 , provides for adjustment of seized assets/ requisitioned assets against the amount of any existing liability under the Income Tax Act, 1961 , (the Act), the Wealth-tax Act, 1957 , the Expenditure-tax Act, 1987 , the Gift-tax Act, 1958 and the Interest-tax Act, 1974 , and the amount of the liability determined on completion of the assessment un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, the seized money is to be adjusted against the advance tax liability of the assessee. Subsequently, Explanation 2 to Section 132B of the Act was inserted by the Finance Act, 2013 w.e.f. 01-06-2013, clarifying that existing liability does not include advance tax payable in accordance with the provisions of Part C of Chapter XVII of the Act. However, the dispute continued on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IGH COURT , have been dismissed. Subsequently, the CBDT has also accepted the judgment of the Hon ble Punjab Haryana High Court in the case of Spaze Towers Pvt. Ltd. - NJRS 2016-LL-1117-5, ITA No. 40 of 2015 = 2016 (11) TMI 1401 - PUNJAB AND HARYANA HIGH COURT dated 17.11.2016, wherein it was held that the Explanation 2 to Section 132B of the Act is prospective in nature. 4. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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