Money seized in I-T searches can be set off against advance tax

The ruling relates to a case involving Ram S Sarda, from whose premises cash was seized by the Income-tax officials after a search. Subsequently, the taxpayer requested the income-tax department to treat the seized cash as payment of advance tax. The department ignored this and levied interest under the provisions of the Income-tax Act on the assumption that advance tax had not been paid. The Commissioner (Appeal) also did not support the assessee.

Source : Economic Times