M/s.Islamic Academy of Education (R), Mangalore V. Asst. Commissioner of Income Tax, Mangalore

ITA 2056/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5400 (ITAT-BANGALORE)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 25-11-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Search and seizure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CIRCUIT BENCH AT MANGAL URU BEFORE SHRI INTURI RAMA RAO, ACCOUNTA N T MEMBER AND SHRI SUDHANS H U SRIVASTAVA, JUDIC I AL MEMBER ITA NO . 2056/BANG/2016 (ASS ESSMENT Y EAR: 2007 - 08 ) ISLAMIC ACADEMY OF EDUCATION (R), 2 - 331/12, YMDC CAMPUS, NITHYANANDA NAGAR, DERALKATTE, MANGAL URU . VS. ... APPELLANT ASST. COMMISSIONER OF INCOME - TAX (EXEMPTIONS) CIRCLE 1, MANGALURU. ... RESPONDENT APPELLANT BY : SHRI P.DINESH, ADVOCATE RESPONDENT : SHRI R.N.SIDDAPPAJI, ADDL.CIT & SHRI S.SREENIVASAN, DCIT (DRS) DATE OF HEARING : 03/02/2017 DATE OF PRONOUNCEMENT : 03 /0 5 /2017 O R D E R PER INTURI RAMA RAO, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE CIT(A), MANGALORE, DATED 22/09/2016 FOR THE ASSESSMENT YEAR 2007 - 08. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NO . 2056 /BANG/201 6 PAGE 2 OF 3 3. T HE ONLY ISSUE ARISING IN THE PRESENT APPEAL IS WHETHER THE ASSES SEE WAS ENTITLED TO ADJUST THE SEIZED CASH AS A RESULT OF SEARCH AND SEIZURE OPERATION AGAINST EXISTING TAX LIABILITY AND THE ASSESSEE WAS ENTITLED TO INTEREST ON BALANCE MONEY. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND MATERIAL ON RECORD, WE ARE OF THE CONSIDERED OPINION THAT THE AO WAS EMPOWERED TO ADJUST CASH SEIZED AS A RESULT OF SEARCH AND SEIZURE OPERATION AGAINST THE TAX DUE. AS REGARDS ENTITLEMENT OF ITA NO . 2056 /BANG/201 6 PAGE 3 OF 3 INTEREST ON BALANCE MONEY REMAINING AFTER ADJUSTMENT AGAINST DUES , AS PER RATIO LAID DOWN BY THE HON'BLE KERALA HIGH COURT IN THE CASE OF CIT VS. G.B.TRANSPORTS (158 ITR 548) AND THE DECISION OF THE HON BLE SUPREME COURT IN THE CASE OF CIT VS. GUJARAT FLUORO CHEMICALS (358 ITR 291) , THE ASSESSEE IS ONLY ENTITLED TO INTEREST AS PROVIDED UNDER T HE STATUTE . S INCE PROVISIONS OF THE ACT DO NOT PROVIDE ANY INTEREST O N SEIZED MONEY, ASSESSEE IS NOT ENTITLED TO ANY INTEREST. 4. IN THE RESULT, THE AP P EAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 0 3 N D M A Y , 201 7 S D / - S D / - (SUDHANSHU SRIVASTAVA) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: BENGALURU. DATE: 0 3 /0 5 /2017 SRINIVASULU, SR. PS COPY TO: 1) APPELLANT 2) RESPONDENT 3) CIT(A) 4) CIT, 5) DR ITAT, BANGALORE, 6) GUARD FILE ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE