Law:

Section:

Section 132B of the Income-tax Act, 1961 - Search and seizure - Retained assets, application of - Block period 1-4-1996 to 1-7-2002 - During search conducted on 2-7-2002, sum of Rs. 33 lakhs was seized - Department completed block assessment on 30-7-2004, wherein it raised demand of Rs. 15,66,471, which included undisclosed income tax demand and penalty - Consequently, balance of Rs. 17,33,529 was released to assessee on 27-9-2004 - Commissioner (Appeals) by order dated 15-12-2004 deleted undisclosed income as determined by department - Consequently, a sum of Rs. 15,66,471, was also released on 24-12-2004 - Assessee claimed interest under section 132B(4)(b) on released sum commencing from expiry of a period of 120 days from date of search, i.e., 1-11-2002 to respective dates on which money was released - Department, however, paid interest on sum of Rs. 17,33,529 for period 1-11-2002 to 30-7-2004 and paid interest on sum of Rs. 15,66,471 for period 1-9-2004 to 31-12-2004 - Whether since interest payable under section 132B(4)(b) on sum of Rs. 17,33,529 became payable on 30-7-2004 and payment was eventually made on 27-9-2004, assessee would be entitled to compensation on account of delay for period 1-8-2004 to 27-9-2004 - Held, yes - Whether since assessee was entitled to interest on sum of Rs. 15,66,471 from 1-11-2002 to 15-12-2004 in terms of section 132B(4)(b) and Assessing Officer without any justifiable reasons paid interest only for period 1-9-2004 to 31-12-2004 ignoring period 1-11-2002 to 31-8-2004, he was to be directed to pay interest under section 132B(4)(b) along with compensation on said sum for period 1-11-2002 to 15-12-2004 - Held, yes FACTS During the course of a search conducted by the department, on 2-7-2002, at the premises of the assessee Rs. 35,15,000 in cash were discovered out of which Rs. 33 lakhs were seized. The block assessment proceedings were completed vide assessment order dated 30-7-2004, wherein the department raised demand of Rs.15,66,477, which included undisclosed income, tax demand and penalty. Pursuant to said order, the balance amount of Rs. 17,33,529 was released to the assessee on 27-9-2004. On appeal, the Commissioner…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492