TMI Blog2010 (12) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... as under:- Whether on the facts and in the circumstances of the case, the CIT(A) has erred in law on facts in directing the A.O. to recomputed the levy of interest u/s 234B and 234C by adjusting the seized cash against the advance tax liability of the assessee? 3. In this case, a search under sec. 132 of the Act was conducted at the premises of the assessee on 19.01.2009, in the course of which a cash amounting to ₹ 90 lakh was seized. The assessee vide letter dated 12.03.2009 addressed to the Additional Director of Income-tax (Investigation), Kanpur requested to adjust the cash seized against the tax liability of the assessee as well as his associate persons pertaining to the assessment year 2009-2010. Thereafter, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of ₹ 83,55,014/- out of the cash seized only with effect from September, 2009. In the rectification order, the AO charged interest of ₹ 4,61,178/- under sec. 234B for six months. Thus, the benefit of amount seized on 19.01.2009 to be adjusted against the tax payable by the assessee was only allowed from September, 2009 only. The AO also charged interest under sec. 234C amounting to ₹ 1,15,276/-. 5. Being aggrieved with the AO s order of rectification dated 6.11.2009 passed under sec. 154 of the Act, the assessee filed appeal before the CIT(A). 6. After considering the facts of the case and submissions of the assessee and relying upon certain decisions, the CIT(A) passed the order directing the AO to adjust the seiz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of the assessee and interest under sec. 234B 234C shall be computed accordingly. 12. In the present case, it is not in dispute that the cash was seized from the assessee on 19.01.2009, and the assessee vide letter dated 12.03.2009 requested the Additional Director of Income-tax (Investigation) to adjust the cash seized against his tax liability. Thus, there is no dispute that the offer to adjust the seized cash against tax liability was made by the assessee before the advance tax liability became due in respect of the amount of instalment fallen due on 15.03.2009. Therefore, the adjustment of the cash recovered from the assessee could be made against the advance tax liability in respect of the instalment fallen due on 15th March, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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