Adjustment of seized cash before completion of assessment permitted against self assessment/ advance tax subject to specific request made by assessee

Brief of the Case

ITAT Pune held In the case of ACIT vs. RDS Construction Pvt. Ltd. that on the matter of adjustment of seized cash with the self assessment tax, we find no infirmity in the order of the CIT(A) since the assessee vide letter dated 30-03-2010 had requested the AO adjust such seized cash as self assessment tax. Until and unless the assessee makes a specific request, the AO is not duty bound to appropriate such tax either towards advance tax or towards self assessment tax. He can only adjust such seized cash from the tax determined after completion of assessment.

Facts of the Case

ITA No.377/PN/2013 (By Revenue)

The assessee is a company engaged in the business of civil construction. It filed its original return of income for the year under consideration on 01-11-2004 declaring total income of Rs.72,07,240/-.A search u/s.132 of the I.T. Act was carried out on 23-09-2009 in the group of cases. In response to notice u/s.153A the assessee filed its return of income on 20-07-2010 declaring total income of Rs.78,14,980/-. The AO completed the assessment u/s.153A r.w.s. 143(3) for the impugned assessment year on a total income of Rs.80,54,157/- by making the additions on account of disallowance u/s 40A(3) and bogus claim of expenses in the name of labour contractors.

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