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TMI Blog2012 (5) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... the returned income. 2. While grounds No.1 to 3 of these appeals contest the additions made by the assessing officer for the years under appeal, while making the assessments under S.143(3) read with S.153 of the Act, effective grounds of the assessee, which need to be determined first, and which are common in both these appeals are those at Sl. Nos. 6 to 8 of the Grounds of Appeal, which read as follows- "1. The CIT(A) erred in dismissing the appeal in limine applying the provisions of Section 249(4)(a). 2. The CIT(A) ought to have seen that the cash seized by the department during the course of search was adjusted towards the tax arrears of A.Y. 2007-08 and thus erred in applying the provisions of Section 249(4)." 3. Learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. 4. Per contra, learned Departmental Representative, for the Revenue supported the orders of the CIT(A). However, the fact of seized cash lying with the Revenue is undisputed. 5. We heard the parties and perused the orders of the Revenue authorities and the papers filed before us. It is a fact that there was a search operation on the premises of the assessee, in the course of which there was also seizure of cash to the extent Rs. 5 lakhs. Further, it is also a fact that the assessee made a request for adjustment of the said cash seized towards taxes due on the admitted income for the years under appeal. We have also perused the Chandigarh Bench decision of the Tribunal in the case of Nikka Mal Babu Ram V/s. ACIT (41 SOT 407), w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the tax due on the income returned' is not defined in the section. The common sensical interpretation of the above expression implies that money to the extent of tax determined by the assessee on the admitted income, must reach the Government before the return of income is filed. In the present case, the assessee's cash to the tune of Rs. 5 lakhs was seized during the operation under S.132 of the Act, and the same was requested to be adjusted by the Revenue towards taxes on the admitted income. The returns of income for both the years bear witness to the said request. Normally, the cash seized during the search operations is kept in P.D. Account and it shall be assessed and appropriated towards the tax liability. In this case, there is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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