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Issues: Assessment of income tax, interest u/s 220(2) for assessment year 1970-71.
Assessment of Income Tax: The petitioner claimed that the amount seized during a raid was his, leading to an assessment on both Poyakkaraveettil Hamsa and the petitioner. The orders of assessment were set aside in appeal by the AAC, and the Tribunal affirmed the decision regarding Hamsa but allowed the Department's appeal in respect of the petitioner. Consequently, the petitioner was found liable for the income tax due on the seized amount. Interest u/s 220(2): The interest demanded from the petitioner by the ITO was contested, with the petitioner arguing that no interest had accrued on the amount in question between the dates of the AAC's order and the Tribunal's order. The court explained that the order of a judicial or quasi-judicial authority is provisionally executable until finality is achieved through appeal. The finality of the assessment order was affirmed by the Tribunal's decision, making the petitioner liable for the interest u/s 220(2) on the amount due as per the assessment order. The challenge against the impugned orders was dismissed, and the petitioner's plea failed.
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