TMI Blog2023 (6) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019. In that eventuality, there could not have been levy of interest u/s. 234B of the Act, as interest u/s. 234B has to be computed from first day of April following the financial year, for which, advance tax was required to be paid. We must observe, in a dispute of identical nature arising in case of assessee s brother, the Tribunal while deciding the issue in [ 2023 (1) TMI 522 - ITAT DELHI ] has deleted levy of interest u/s. 234B of the Act by observing that the cash seized should have been adjusted against self assessment tax payable with the return of income. We hold that interest charged u/s. 234B of the Act in the peculiar facts and circumstances of the present case, deserves to be deleted. Appeal of assessee allowed. - ITA N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that he could not offer the amount in the return of income since, the return of income was not accepted without payment of tax. Be that as it may, the assessee again issued a letter to the Assessing Officer offering the cash seized from the locker as income and requested the Assessing Officer to adjust the tax liability from the cash seized by the Department. The Assessing Officer ultimately completed the assessment vide order dated 10.03.2021 adding back the cash seized of Rs.1,07,00,000/-. However, while computing the tax liability of the assessee, the Assessing Officer levied interest u/s. 234B of the Act alleging non-payment of advance tax. Though, the assessee challenged the levy of interest before the first appellate authority, howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, under identical facts and circumstances, in case of the assessee s own brother, interest charged u/s. 234B of the Act has been deleted by the Tribunal. In this context, he drew our attention to the order of the Tribunal placed in the paper book. 5. Learned Departmental Representative strongly relied upon the observations of the Assessing Officer and learned Commissioner (Appeals). 6. We have considered rival submissions and perused materials on record. In so far as the factual aspect of the issue is concerned, there is no dispute that at the time of search and seizure operation conducted in the case of a third party, a locker standing in the name of the assessee was found, wherein, cash amounting to Rs.1,07,00,000/- was found and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould have adjusted the tax liability relating to the undisclosed income declared by the assessee by way of self assessment tax on 1st April, 2019. In that eventuality, there could not have been levy of interest u/s. 234B of the Act, as interest u/s. 234B of the Act has to be computed from first day of April following the financial year, for which, advance tax was required to be paid. At this stage, we must observe, in a dispute of identical nature arising in case of assessee s brother, the Tribunal while deciding the issue in ITA No. 300 2748/Del/2022 dated 11.01.2023 has deleted levy of interest u/s. 234B of the Act by observing that the cash seized should have been adjusted against self assessment tax payable with the return of income. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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