Case Law Details
Nitin Kumar Vs ACIT (ITAT Kolkata)
Interest under section 234A is charged for delay in filing of the return from the prescribed due date. The cash was seized from the possession of the assessee before due date of filing of return under section 139(1) in the relevant assessment year when such seizure took place. Thus, it could be safely concluded that revenue was in possession of the seized cash from the date of such seizure for adjustment towards existing liability of the assessee. Therefore, the tax payable by the assessee on the returned income was eligible for appropriation from the seized cash. Once the same was appropriated, there will be no resultant tax liability. Thus, there could be no charging of interest under section 234A.
FULL TEXT OF THE ITAT JUDGMENT
1. This appeal by the assessee arises out of the order of the Learned Commissioner of Income Tax(Appeals)-7, Kolkata [in short the ld CIT(A)] in Appeal No.572/CIT(A)- 7/Cir-25/14-15 dated 10.05.2016 against the order passed by the ACIT, Circle-52, Kolkata [ in short the ld AO] under section 143(3) read with Section 153A of the Income Tax Act, 1961 (in short “the Act”) dated 27.03.2014 for the Assessment Year 2011-12.
2. The only issue involved is whether the seized cash of Rs. 66,80,000/- on 23.04.2011 is eligible to be given credit before charging interest u/s 234A and 234B of the Act, in the facts and circumstances of the case.
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