Section 234B and 234c of the Income Tax Act, 1961 — Interest — Tribunal was right in law in holding that the letter of request dated 15.03.2007 shall be taken as date of payment of tax but only as on the date of filing the return of income for the purpose of computation of interest under Section 234B and 234C.[2020] 54 ITCD 041 (KARN)
Facts: Being aggrieved of the order of Tribunal, assessee went on appeal before High Court and raised the question of law that (i) Whether on the facts and in the circumstances of the case the Honourable Tribunal was right in law in holding that the letter of request dated 15.03.2007 but only as on the date of filing the return of income for the purpose of computation of interest under Section 234B and 234C?
(ii) Is the implied finding of Honourable Tribunal that the appellant has offered the cash seized as advance tax against the liability in block assessment, not perverse in the light of the letter of request dated 15.03.2007?
Held, that the assessee has offered a sum of Rs. 50 Lakhs on 15.03.2007 towards the advance tax payable for the Assessment year 2007-08. It is also pertinent to mention here that prior to seizure of the cash, the assessee had paid advance tax in four installments on 15.06.2006, 14.09.2006, 14.12.2006 and 08.03.2007, which is evident from statement of total income. However, the department did not adjust the aforesaid amount even though the cash was available with the department. The aforesaid amount could have been adjusted against the advance tax. It is also pertinent to note that Explanation 2 to Section 132B has been held to be prospective in nature and the aforesaid position has been settled by Circular No.20/2017 dated 12.06.2017.
 In view of the preceding analysis, we hold  that the tribunal ought to have held the date of payment of tax by the assessee as 15.03.2007 i.e., the date on which the request was made by the assessee to adjust the cash seized against the advance tax payable towards the tax for the Assessment year 2007-08. The first substantial question of law is answered in favour of the assessee and against the revenue. In the facts of the case, in view of our answer to first substantial question of law, it is not necessary to answer the second substantial question of law. The orders passed by the Income Tax Appellate Tribunal is hereby quashed and it is directed that date of payment of tax shall be taken as 15.03.2007 i.e., the date on which the request was made by the assessee to adjust  the cash seized against the advance tax payable for the Assessment year 2007-08.