Sections 132B, 140A, 153A and 234B of the Income Tax Act, 1961 were analyzed regarding adjustment of...

Sections 132B, 140A, 153A and 234B of the Income Tax Act, 1961 were analyzed regarding adjustment of seized cash against tax liability. The appellants claimed that cash seized from Sarup Chand should be treated as their cash and adjusted against their tax liability u/s 140A read with Section 153A. However, Section 132B provides for dealing with seized assets as prescribed. While determining tax liability, tax deducted/collected at source and advance tax are deducted from total liability. The appellants did not pay advance tax and wrongly claimed the seized amount from Sarup Chand should be treated as their advance tax u/s 132B. The seized cash was in Sarup Chand's bank account, and until liability determination, there was no question of adj..... .....

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