Taxpayer Liable for Interest u/s 234B due to Delayed Advance Tax Payment, Despite Seeking Adjustment of Seized Cash against Tax Liability: Chandigarh HC

In a significant ruling, the Chandigarh High Court held that a taxpayer is liable for interest under Section 234B of the Income Tax Act for delayed payment of advance tax, even if they have requested the adjustment of seized cash against their tax liability. The court clarified that the mere filing of a request for cash adjustment does not absolve the taxpayer from the responsibility of timely advance tax payments. Since the taxpayer failed to pay the advance tax on time, interest under Section 234B was deemed applicable. This ruling underscores the importance of timely compliance with advance tax payment obligations, irrespective of any claims or requests made for adjustments of seized cash or other dues.