TMI Blog2018 (4) TMI 338X X X X Extracts X X X X X X X X Extracts X X X X ..... t day of the assessment year i.e. from 01.04.2011 onwards. Hence, we hold that the interest u/s 234B of the Act would be eligible to be charged on the assessee for the month of April, 2011 only i.e. for one month on the tax finally assessed by the ld. AO. When the seized cash of ₹ 66,80,000/- is in the possession of the income tax department from 23.04.2011 onwards, it would be unfair and unjust to charge interest on the assessee u/s 234B of the Act, merely because, the seized cash was given credit on a later date by the ld. AO. It would be just and fair to conclude that the assessee could not be fastened with interest liability for the delayed adjustment of seized cash by the ld. AO. Hence, we direct the ld. AO to charge interest u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Police Department during the election period and cash of ₹ 66,80,000/- was seized thereon. The said cash was handed over by the Police Department to the Income Tax Department u/s 132A of the Act. The assessee vide letter dated 14.07.2011 before the DDIT(Inv.), Unit-IV(1), Kolkata agreed to offer the seized cash as his undisclosed income towards the unexplained creditors and other liabilities appearing in his books for the assessment year 2011-12. The assessee also pleaded that the same may be treated as disclosure of income u/s 132(4) of the Act and pleaded for immunity from levy of penalty explanation 5 Clause (ii) of Section 271(1)(c) of the Act, in view of satisfying all the three conditions prescribed therein. The ld. AO la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable. Hon ble ITAT, Kolkata, B Bench in the order cited (supra) held that the action of the assessee in seeking to adjust the seized cash with self assessment tax payable along with the return of income is in order and in accordance with section 132B of the Act as admittedly self assessment tax payable becomes existing liability on the part of the assessee to settle. Respectfully following the decision of Hon ble ITAT, Kolkata, B Bench and the judgments cited (supra) I direct the assessing officer to adjust the tax liability on the additional income of ₹ 66,80,000/- as self assessment tax from the date of furnishing the return of income u/s 139(1) for the assessment year 2011-12 i.e. 27.03.2012 from the seized cash and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed income, there will be no tax that will be left, in order to be eligible to be charged with interest u/s 234A and 234B of the Act. We find that the assessee had already made 132(4) disclosure statement before the DDIT(Inv.) vide letter dated 13.07.2011 filed on 14.07.2011 giving his acceptance for offering of ₹ 66,80,000/- as undisclosed income and giving his consent for appropriation of the said seized cash towards the tax liability for the Assessment year 2011-12. We find that the interest u/s 234A of the Act is chargeable only for the period of delay in filing the return of income. The due date of filing return of income for the assessment year 2011-12 u/s 139(1) of the Act in this case falls on 31.07.2011. The assessee had filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee could not be fastened with interest liability for the delayed adjustment of seized cash by the ld. AO. Hence, we direct the ld. AO to charge interest u/s 234B of the Act on the tax payable on the assessed income for one month only i.e. for April, 2011. 5.2. With regard to interest u/s 234C of the Act , it is levied for deferment of payment of advance tax for the period of 01.04.2010 to 31.03.2011. In the instant case, since, the cash was seized after the expiry of the previous year i.e. after 31.03.2011, the assessee cannot claim non-chargeability of interest u/s 234C on that account. Hence, interest u/s 234C of the Act is leviable in this case. 6. Accordingly, grounds raised by the assessee are partly allowed. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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