Kushal Narayan Patel Vs ITO (ITAT Mumbai)
ITAT Mumbai held that in the matter of adjustment of seized cash against self-assessment tax liability restored the matter back to file of AO for re-verification of application filed by the assessee. Accordingly, appeal partly allowed.
Facts- During parliamentary/legislative assembly election period, cash of ₹10,83,200/-was found from a vehicle occupied by the assessee by the static surveillance team of the election commission. During the course of assessment proceeding, the assessee accepted the cash seized of ₹10,83,260/- as his undisclosed income and requested vide letter dated 10/04/2015 and 10/02/2016 for adding the said sum to the total income and adjustment of cash seized against advanced tax liability. Accordingly, total income was computed at ₹50,95,360/- in the assessment order passed u/s. 153A/143(3) of the Act on 30/12/2016. A notice of demand u/s. 156 of the Act was issued along with the assessment order, wherein the assessee was allowed 30 days time for payment of the demand of ₹ 17, 01, 366/- including interest under section 234B/234C of the Act, but the Assessing Officer adjusted the cash seized against the tax liability only on 21/03/2018.
In view of non-adjustment of the cash seized against the advance tax or self-assessment tax liability while passing the assessment order u/s. 153A of the Act and further charging of interest u/s. 220 of the Act, the assessee filed appeal before the Ld. CIT(A), but could not succeed. Aggrieved, the present appeal is filed.
