DCIT, Faridabad V. Sh. Manav Sardana, New Delhi

ITA 607/DEL/2015

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3836 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: E
• Assessment Year: 2010-2011
• Appeal Filed On: 29-01-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHEFALI SWAROOP
• Assessee Lawyers: DR RAKESH GUPTA
• Section: 234B; 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : E : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI KULDIP SINGH, JUDICIAL MEMBER ITA NO.607/DEL/2015 ASSESSMENT YEAR : 2010-11 DCIT, CENTRAL CIRCLE-1, FARIDABAD. VS. MANAV SARDANA, H.NO.69A, SAINIK FARMS, NEW DELHI. PAN: AATPS6108A (APPELLANT) (RESPONDENT) ASSESSEE BY : DR. RAKESH GUPTA, ADVOCATE & SHRI TARUN KUMAR, ADVOCATE DEPARTMENT BY : MS SHEFALI SWAROOP, CIT DR DATE OF HEARING : 24.10.2017 DATE OF PRONOUNCEMENT : 25.10.2017 ORDER PER R.S. SYAL, VP: THIS APPEAL BY THE REVENUE RELATING TO THE A.Y. 20 10-11 ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 24.11.2014. ITA NO.607/DEL/2015 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST ALLOWING OF ADJUSTMENT OF SEIZED CASH TOWARDS ADVANCE TAX LIABI LITY. 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE CLAIMED ADVANCE TAX PAID OF RS.18 LAC IN HIS INCOME-TAX RET URN FOR ASSESSMENT YEAR 2010-11 AND CREDIT OF THE SAME WAS GIVEN BY TH E ASSESSING OFFICER. THEREAFTER, RECTIFICATION PROCEEDINGS WERE TAKEN U/ S 154 BY THE AO ON THE GROUND THAT THIS AMOUNT WAS KEPT IN P.D. ACCOUN T AS THE SAME WAS SEIZED AT THE TIME OF SUCH OPERATION. THE ASSESSIN G OFFICER OPINED THAT THE ASSESSEE WAS NOT ENTITLED TO ADJUSTMENT OF SEIZ ED CASH TOWARDS ADVANCE TAX LIABILITY FROM THE DATE OF MAKING THE A PPLICATION(S) IN THAT REGARD. THAT IS HOW, INTEREST U/SS 234B AND 234C WAS RECOMPUTED. THE LD. CIT(A) OVERTURNED THE ACTION OF THE ASSESSING O FFICER BY RELYING ON THE JUDGMENT OF THE HON'BLE JURISDICTIONAL HIGH COU RT IN CIT VS. ASHOK KUMAR (2011) 334 ITR 355 (P&H) . THE REVENUE IS AGGRIEVED. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, WE FIND THAT THE ASSESSEE REQUE STED THE INCOME-TAX AUTHORITIES ON 07.09.2009 AND 10.08.2011 TO ADJUST SEIZED CASH OF RS.18 ITA NO.607/DEL/2015 3 LAC AGAINST THE ADVANCE TAX LIABILITY. THE HON'BLE JURISDICTIONAL HIGH COURT IN THE AFORENOTED CASE HAS HELD THAT THE ASSE SSEES REQUEST FOR ADJUSTMENT OF SEIZED CASH HAS TO BE TAKEN INTO CONS IDERATION IN THE COMPUTATION OF INTEREST U/S 234B AND 234C. SINCE T HE LD. CIT(A) HAS FOLLOWED THE HON'BLE JURISDICTIONAL HIGH COURT IN S ETTING ASIDE THE CONTRARY VIEW TAKEN BY THE ASSESSING OFFICER, WE UP HOLD THE IMPUGNED ORDER. 5. IN THE RESULT, THE APPEAL OF THE REVENUE I S DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 25.10.201 7. SD/- SD/- [KULDIP SINGH] [R.S. SYAL] JUDICIAL MEMBER VICE PRESIDENT DATED, 25 TH OCTOBER, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.