Levy of interest under section 234B arising out of surrender of cash found in a locker

Facts:

Assessee was found to be in possession of a locker thru search operations and cash to the extent of Rs. 1.07 crores was seized. Since the assessee did not have liquidity he offered the said amount as income and requested for adjustment of the tax amount out of the amount seized. AO levied interest on the same under section 234B also upheld by the CIT(A). On appeal -

Held as per section 132B the seized assets can be offset against an existing liability. Advance tax was not an existing liability but self-assessment tax certainly. Since the tax adjustment out of seized cash was to be made only against self-assessment tax no interest under section 234B further can be levied.

Case: Arun Bansal v. ACIT 2023 TaxPub(DT) 3275 (Del-Trib)