Law:

Section:

Section 132B of the Income-tax Act, 1961 - Search and Seizure - Retained assets, application of - Certain amount was seized from assessee - Assessing Officer took seized amount as concealed income and made addition to income of assessee which was later deleted by Commissioner (Appeals) - Pursuant to order of Commissioner (Investigation) amount seized was refunded with interest for period prescribed under section 132B(4)(b) - After lapse of seven years from date of order of refund of seized amount assessee filed writ petition praying for interest up to date of refund - Whether right to return of article accrued on date of appeal against order of Assessing Officer or latest on date of order of Commissioner (Appeals) and assessee ought to have approached court within a reasonable period from that date - Held, yes - Whether since assessee had approached court after seven years, it could not be said that it was within a reasonable period - Held, yes - Whether, therefore, on ground of delay and laches instant petition could not be entertained - Held, yes B.N. Goswamy for the Petitioner. Sanjiv Khanna and Ajay Jha for the Respondent. JUDGMENT B.C. Patel, CJ. - The petitioner has approached this Court by filing a writ petition under Article 226 of the Constitution of India, inter alia,praying that the respondents be directed to pay interest on Rs. 6,49,250 from 25-10-1985 to 9-4-1990 which is the date of refund of the amount at the rate of 15 per cent per annum, and further interest on the above amount of Rs. 6,49,210 at the rate of 15 per cent from 9-4-1990 till the date of payment. 2. The assessee was searched at Bombay Airport and on his person a sum of Rs. 9,80,000 was found and seized by the Income Tax authorities on 4-4-1984. In view of this seizure and the provisions contained in section 132 of the Income-tax Act, 1961 (hereinafter to be referred as "the Act"), an order was made under section 132(5) of the Act on 4-7-1984. The order could have been challenged by the petitioner under sub-section (11) of section 132 of the Act. However, the order was accepted and no challenge was made thereto. It appears that on 25-10-1985 the Assessing Officer completed the…

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