TMI Blog2023 (5) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with return of income on 31.08.2015 itself. This was conveniently ignored by the lower authorities. From the bare reading of provisions of section 132B of the Act together with Explanation 2 thereon, there is no prohibition to adjust the seized cash with self assessment tax. What is prohibited is only adjustment of seized cash with the advance tax. Hence, we hold that the assessee is entitled for adjustment of seized cash of Rs. 1.76 crores with self assessment tax payable by the assessee in the return of income. Our view is further fortified by the decision of ACIT Vs. Narendra N. Thacker [ 2015 (11) TMI 62 - ITAT KOLKATA] and in case of Spaze Towers (P) Ltd [ 2016 (11) TMI 1401 - PUNJAB AND HARYANA HIGH COURT] Ground raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying cash of Rs. 1.76 crores, who claimed that the said cash belongs to assessee. In the statement recorded u/s 132(4) of the Act the assessee accepted that Shri Achut Kumar Gupta was his associate. He also confirmed that the cash of Rs. 1.76 crores found and seized in the car belongs to him and the same is not recorded in his books of accounts. Further, the assessee also accepted that the entries recorded in the seized loose sheets of two pages were not entered in the books of accounts. On the basis of seized documents, the assessee, in his statement recorded u/s 132(4) of the Act, accepted unaccounted income of Rs. 7 crores inclusive of cash seized of Rs. 1.76 crores. We have perused the return of income of the assessee filed on 31.08.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to treat the seized cash of Rs. 1.76 crores as advance tax payable for AY 2015- 16 and accordingly requested for recalculating the interest u/s 234B of the Act. This rectification application is enclosed at page No. 24 of the paper book. The ld AO disposed off the rectification application filed u/s 154 of the Act against assessee by applying the provisions of Explanation 2 to section 132B of the Act. For the sake of convenience, the said provision is reproduced herein below:- Application of seized or requisitioned assets. 132B. (1) The assets seized under section 132 or requisitioned under section 132A may be dealt with in the following manner, namely: Explanation 2. For the removal of doubts, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zed cash of Rs. 1.76 crores with his self assessment tax payable by the assessee along with return of income on 31.08.2015 itself. This was conveniently ignored by the lower authorities. From the bare reading of provisions of section 132B of the Act together with Explanation 2 thereon, there is no prohibition to adjust the seized cash with self assessment tax. What is prohibited is only adjustment of seized cash with the advance tax. Hence, we hold that the assessee is entitled for adjustment of seized cash of Rs. 1.76 crores with self assessment tax payable by the assessee in the return of income. Our view is further fortified by the decision of the coordinate bench of Kolkata Tribunal in the case of ACIT Vs. Narendra N. Thacker reported i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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