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The ACIT, Central Circle-17, New Delhi Versus Shri Kuldeep Singh Solanki And Vice-Versa

2018 (1) TMI 390 - ITAT DELHI

Scope of rectification order u/s 154 - withdrawing the credit being cash seized during the course of search and claimed as self-assessment tax in ITR filed under section 153A - Held that:- The Hon’ble Kolkata High Court in the case of Hindustan Lever Limited [2006 (3) TMI 80 - CALCUTTA High Court] while considering the scope of Section 154(1) of the I.T. Act held that the mistake must be so obvious that it can be easily corrected to wit an arithmetic error, wrong quotation of section etc., but n .....

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the issue was highly debatable before the A.O, therefore, in such circumstances, A.O. should not have pass the rectification order under section 154 of the I.T. Act. No infirmity have been pointed out in the order of the Ld. CIT(A). We, therefore, confirm the same and dismiss the appeal of the Revenue. - ITA.No.452/Del./2016, C.O.No.117/Del./2016 And ITA.No.452/Del./2016 - Dated:- 1-1-2018 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Revenue : Ms .....

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spect of seized cash of ₹ 2,60,00,000/- from the date of seizure to the date of completion of assessment. 2. On the facts and in the circumstances of the case, the direction of CIT(A) in contradicting to her direction to adjust the seized cash as self assessment tax and therefore, the interest u/s 234B is livable upto the date of such adjustment. 3. (a) The order of the CIT (A) is erroneous and not tenable in law and on facts, (b) The appellant craves leave to add, alter or amend any/all o .....

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er on, an order under section 154 was passed on 9th June, 2015 wherein credit of self-assessment tax of ₹ 2,60,00,000 being cash seized during the search was withdrawn and a demand of ₹ 3,22,34,580 was raised. 2.1. The assessee aggrieved against the order passed under section 154, filed appeal before the Ld. CIT(A) and it was explained that A.O. has erred in not allowing or withdrawing the credit of ₹ 2.60 lakhs being cash seized during the course of search and claimed as self- .....

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June, 2012 requested to adjust the above cash seized towards payment of tax due as additional income offered. The assessee also made similar statement in his statement recorded under section 131. The assessee has claimed ₹ 2.60 crores as self assessment tax in the return filed under section 153A of the I.T. Act which were the cash seized during the course of search. The assessee also submitted before A.O. at assessment stage that cash so seized may be adjusted against the self-assessment t .....

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ion 154 of the I.T. Act. The A.O. has also failed to note that adjustment of tax has already been given in intimation issued under section 143(1) of the I.T. Act. The Ld. CIT(A) considering the explanation of assessee in the light of order of ITAT, Kolkata Bench in the case of Narendra N. Thacker dated 28.09.2015 in I.T.(SS)A.No.1/Kol/2012, allowed the appeal of assessee. His findings in paras 5 and 6 of the order are reproduced as under : Finding : 5. I have gone through the above submissions m .....

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ng assessment u/s 143(3) r.w.s. 153A. Later on A.O. rectified the order u/s 154 of the Income Tax Act, 1961 and withdrawn the same. However this action of A.O. is not correct in view of fact that this mistake is not apparent from the record and cannot be rectified u/s 154 of the Income Tax Act, 1961. This fact is also clear from the recent judgment dt. 28.09.2015 in the case of ACIT vs. Narendra N Thacker of ITAT Bench B, Kolkata, IT (SS) A No. 01/KOL/2012 cited by the Ld. Counsel of the Appella .....

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seized of ₹ 2,60,00,000/-. 6. In the result, the appeal is allowed. 3. The Ld. D.R. relied upon the order of the A.O. 4. On the other hand, the Learned Counsel for the Assessee, reiterated the submissions made before the authorities below and submitted that ITAT, Kolkata Bench in the case of Narendra N. Thacker (supra) held that adjustment of seized cash as selfassessment tax is in order. 5. On consideration of the rival submissions, we do not find any merit in the departmental appeal. It .....

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