9911796707
TMI Blog2002 (8) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... Later on, the AO passed an order under s. 154 of the Act charging interest under the aforesaid sections by saying that there was a mistake on the part of the AO for not charging interest under the aforesaid sections at the time of passing the original assessment order under s. 143(3)/250, dt. 2nd Dec., 1993. On appeal, the CIT(A) directed the AO to delete the element of interest charged under ss. 234A, 234B and 234C by forming an opinion that when the assessee was having a sum of Rs. 2 lakhs to his credit and the tax liability is much less than that, there was no justification in charging the interest as aforesaid. Hence, the Department is in appeal. 3. There was a search conducted on 2nd May, 1998, by the Department in the premises of T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the light of the material available on record. We have gone through the orders of the authorities below. It is an admitted fact that the Dy. CIT(A) has directed the AO to delete the aforesaid interest on a footing that the assessee was having a sum of Rs. 2 lakhs to his credit but in our considered opinion there was no credit of Rs. 2 lakhs to the credit of the assessee at the time when the advance-tax was required to be paid by the assessee on the income disclosed by him as discussed below. It is an admitted fact that no cash money was seized. It is also an admitted fact that a draft of Rs. 2,70,450 was purchased by the partnership firm M/s Bharat Galvanising Co. and as such, the true and real owner in the eyes of law is not the assessee b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing into consideration the seizure of Rs. 2 lakhs is also of no help to the assessee inasmuch as the AO has mistakenly took the amount of Rs. 2 lakhs as cash seized instead of admitted fact of seizure of draft. The seizure of draft could not be made equivalent to the seizure of cash. The order passed by the AO under s. 132(5) under a mistaken belief cannot be taken as the basis to say that the assessee had discharged his advance tax liability to the extent of Rs. 1,13,000 as ultimately determined on completion of the assessment. We, therefore, find no action or step taken by the assessee for converting the draft into cash for making further payment to the Department till prior to 23rd March, 1993. 5. On reading of provisions of ss. 234A, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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