TMI Blog2020 (6) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... 07, which is evident from statement of total income. Department did not adjust the aforesaid amount even though the cash was available with the department. The aforesaid amount could have been adjusted against the advance tax. We concur with the view taken by High Court of Allahabad, which has been upheld by the Supreme Court. It is also pertinent to note that Explanation 2 to Section 132B has been held to be prospective in nature and the aforesaid position has been settled by Circular No.20/2017 dated 12.06.2017. We hold that the tribunal ought to have held the date of payment of tax by the assessee as 15.03.2007 i.e., the date on which the request was made by the assessee to adjust the cash seized against the advance tax payable tow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 234B and 234C? (ii) Is the implied finding of Honourable Tribunal that the appellant has offered the cash seized as advance tax against the liability in block assessment, not perverse in the light of the letter of request dated 15.03.2007? 2. For the facility of reference facts from ITA No.383/2011 are being referred to. The assessee is a private limited company which is engaged in the business of trading random slabs of marbles and granites. A proceeding under Section 122 of the Act was initiated and a search took place in the business premises of the assessee and residential premises of the Director and accountant. During the course of the said proceeding, cash amount of ₹ 4.77 Crores was seized by the departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o adjust a sum of ₹ 50 Lakhs out of the cash seized towards advance tax payable for the Assessment year 2007-08. While pointing out to the statement of total income, it was pointed out that before seizure of the cash, four installments of advance tax was paid on 15.06.2006, 14.09.2006, 14.12.2006 and 08.03.2007. Our attention has also been invited to provisions of Section 132B of the Act and it has been pointed out that Explanation 2 has been inserted to the aforesaid Section with effect from 01.06.2013. It has also been submitted that in respect of the aforesaid explanation, Circular No.20/2017 dated 12.06.2017 has been issued wherein it has been stated that insertion of Explanation 2 to Section 132B of the Act shall have prospective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 209(1)(a) of the Act and as per Section 210(1) of the Act is required to calculate the amount of advance tax. Therefore, the tribunal is justified in taking the view that for the purposes of adjustment of the cash seized against the advance tax payable can be treated as tax paid on the date of filing of the return. 6. We have considered the submissions made on both the sides and have perused the record. Admittedly, in the instant case, the assessee has offered a sum of ₹ 50 Lakhs on 15.03.2007 towards the advance tax payable for the Assessment year 2007-08. It is also pertinent to mention here that prior to seizure of the cash, the assessee had paid advance tax in four installments on 15.06.2006, 14.09.2006, 14.12.2006 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
