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Tax Publishers
Levy of interest under section 234B arising out of
surrender of cash found in a locker
Facts:
Assessee
was found to be in possession of a locker thru search operations and cash to
the extent of Rs. 1.07 crores was seized. Since the assessee did not have liquidity
he offered the said amount as income and requested for adjustment of the
tax amount out of the amount seized. AO levied interest on the same under
section 234B also upheld by the CIT(A). On appeal -
Held
as per section 132B the seized assets can be offset against an existing
liability. Advance tax was not an existing liability but self-assessment
tax certainly. Since the tax adjustment out of seized cash was to be made only
against self-assessment tax no interest under section 234B further can be
levied.
Case: Arun
Bansal v. ACIT 2023 TaxPub(DT) 3275 (Del-Trib)
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