INCOME TAX ACT, 1961

Section 154 Section 234B

Rectification - Mistake apparent - AO having denied adjustment of seized cash against advance tax liability so as to arrive at interest leviable under section 234B -

During search at assessee's premises cash was seized. Assessee sought for adjustment of seized cash against advance tax liability having arisen on account of surrender of undisclosed cash made as on very day of search 234B. AO denied this and accordingly chanrged interest under section 154.Held: Section 132B(1) never prohibits utilization of amount seized during the course of search towards advance tax liability. In view of this fact, AO was directed to compute the interest under section 234B in accordance with law, if at all, it was leviable only till date when assessee made application to department for adjustment of the cash seized towards income tax liability. To that extent, there was a mistake apparent on record in the order of AO while computing the interest under section 234B.

Followed:Ram S. Sarda v. DCIT, ITA. No. 1172/Rjt/2010, Order, dated 21-12-2011, Dwarkadas Punjabhai Patel HUF v. Asstt. CIT ITA. No. 2085/Ahd/2012 and 2086/Ahd/2012, Order, dated 25-10-2013, Dy. CIT v. Bombay Beads Centre ITA. No. 3458/Mum/2011, Order, dated 2-3-2012, CIT v. Shri Murlidhar Agarwa ITA. No. 777/Lkw/2014, Order, dated 4-9-2015 and Satya Prakash Sharma v. Asstt. CIT ITA. No. 1735/Del/2008, Order, dated 13-2-2009 : 2009 TaxPub(DT) 1454 (Del-Trib.

REFERRED :

FAVOUR : Partly in assesses favour.

A.Y. : 2011-12

INCOME TAX ACT, 1961

Section 154 Section 234C

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