9911796707
TMI Blog2024 (5) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... iew of the fact that any tax that is paid or sought to be paid by the assessee after the expiry of the financial year could only be construed as advance payment of self assessment tax. In the instant case, the assessee had made a request for adjustment of seized fixed deposits towards the tax liability in terms of section 132B of the Act on 11.04.2012 itself. Obviously, that request had to be construed only towards payment of self assessment tax liability, dehors the actual date of filing of return of income. The most excruciating fact in this appeal is that the assessee though had made a request while filing the belated return of income on 26.03.2013 had indeed sought for adjustment of seized fixed deposits with the self assessment tax lia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r referred to as ld. AO ). 2. The assessee has raised the following grounds of appeal before us:- 1. That under the facts and circumstances, the application u/s. 154 dated 06.04.2015 since, was mandated to be disposed off on or before 31.10.2015, however disposed off vide order dated 03./04-07-2017, thus impugned order barred by limitation and unsustainable in law, consequently, the application dated 06.04.2015 should be deemed to have been accepted and accordingly interests u/s. 234A 234B should be correctly calculated by deeming the payment of Rs. 74,44,694/- being made on 11.04.2012. 2. That under the facts, the payment of tax of Rs. 74,44,694/- should have been deemed to be paid on 11.04.2012 therefore the credit of Rs. 74,44,694/- shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee charging interest u/s 234B of the Act till 31.03.2015. The assessee filed rectification petition u/s 154 of the Act before the ld AO on 06.04.2015, which was disposed of beyond the time limit prescribed u/s 154(8) of the Act on 04.07.2017, rejecting the claim of the assessee on the following two grounds: a. the return of income was filed by the assessee belatedly u/s 139(4) of the Act and hence, the assessee s claim cannot be accepted. b. the assessee vide letter dated 11.04.2012 had sought adjustment of seized fixed deposits with the advance tax liability of the assessee and since the financial year itself had ended on 31.03.2012 and accordingly the advance tax obligation also ended for the assessee, therefore, the plea of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade a request for adjustment of seized fixed deposits towards the tax liability in terms of section 132B of the Act on 11.04.2012 itself. Obviously, that request had to be construed only towards payment of self assessment tax liability, dehors the actual date of filing of return of income. The most excruciating fact in this appeal is that the assessee though had made a request while filing the belated return of income on 26.03.2013 had indeed sought for adjustment of seized fixed deposits with the self assessment tax liability, the entire orders of the lower authorities are completely silent on this issue, in as much as absolutely the lower authorities had conveniently ignored by not giving any finding to that effect. Since the issue is alr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification application u/s 154 of the Act wherein, the assessee made a request to treat the seized cash of Rs. 1.76 crores as advance tax payable for AY 2015-16 and accordingly requested for recalculating the interest u/s 234B of the Act. This rectification application is enclosed at page No. 24 of the paper book. The ld AO disposed off the rectification application filed u/s 154 of the Act against assessee by applying the provisions of Explanation 2 to section 132B of the Act. For the sake of convenience, the said provision is reproduced herein below:- Application of seized or requisitioned assets. 132B. (1) The assets seized under section 132 or requisitioned under section 132A may be dealt with in the following manner, namely: Explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r adjustment of seized cash of Rs. 1.76 crores with his self assessment tax payable by the assessee along with return of income on 31.08.2015 itself. This was conveniently ignored by the lower authorities. From the bare reading of provisions of section 132B of the Act together with Explanation 2 thereon, there is no prohibition to adjust the seized cash with self assessment tax. What is prohibited is only adjustment of seized cash with the advance tax. Hence, we hold that the assessee is entitled for adjustment of seized cash of Rs. 1.76 crores with self assessment tax payable by the assessee in the return of income. Our view is further fortified by the decision of the coordinate bench of Kolkata Tribunal in the case of ACIT Vs. Narendra N. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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