Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, CIRCUIT BENCH AT MANGALURU
Before: SHRI INTURI RAMA RAO & SHRI SUDHANSHU SRIVASTAVA
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.
The assessee raised the following grounds of appeal:
3. The only issue arising in the present appeal is whether the assessee 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.
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 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 the statute. Since provisions of the Act do not provide any interest on seized money, assessee is not entitled to any interest.
In the result, the appeal filed by the assessee is dismissed.