Vengali Abdul Khader vs. ACIT

Parties Involved

Facts Summary

The assessee, Vengali Abdul Khader, engaged in the business of wholesale trading of chicken feed and running a hatchery, was subject to search proceedings under section 132 of the Income Tax Act. Cash amounting to Rs. 4,39,66,780/- was found and seized during the search. The assessee admitted the income on account of the seized cash and declared it in the return filed for the year under consideration. The Assessing Officer levied interest under sections 234A, 234B, 234C, and 234F of the Act, which was adjusted against the seized cash. The assessee appealed against the order of the Commissioner of Income Tax (Appeals) confirming the levy of interest. The issue raised was whether the advance tax/tax liability of the assessee for the year under consideration should be adjusted against the cash seized w.e.f. the date on which such seizure was made.…

Legal Issues

• 1. Whether the advance tax/tax liability of the assessee for the year under consideration shall be adjusted against the cash seized w.e.f. the date on which such seizure was made.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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