2019 (3) TMI 1141 - HC - Income Tax

Interest on refund of cash amount seized from of date of sizer to date of refund- cash was requisitioned and seized u/s 132/132A - petitioner sent a letter to respondent(department) for interest on the seized cash amount for the period from 6.1.2012 to 4.7.2017, but no response has been received till date - HELD THAT - Perusing the present petition and without expressing any opinion on the merits of the case, we dispose of the present petition by directing respondent No.3 to take a decision on the letter, Annexure P-7, in accordance with law by passing a speaking order and after affording an opportunity of hearing to the petitioner within a period of two months from the date of receipt of the certified copy of the order. It is further directed that in case, the petitioner is found entitled to the payment of interest, the same be released to him within next one month, in accordance with law.

Summary

Issues:
Petition for mandamus to pay interest on seized cash amount.

Analysis:
The petitioner, an employee of a company, was carrying cash for a property deal when it was seized during an election check. The seized cash was deposited into the Income Tax Commissioner's account. The petitioner filed returns and went through assessment, appeal, and tribunal processes. After receiving a cheque for the seized amount, the petitioner requested interest on the cash but did not receive a response. The petitioner filed a writ petition seeking a mandamus to direct the respondents to pay interest on the seized cash amount.

The court, after hearing the petitioner's counsel, disposed of the petition by directing respondent No.3 to decide on the petitioner's letter requesting interest within two months. If the petitioner is entitled to interest, it should be released within one month. The court refrained from expressing any opinion on the case's merits but emphasized the need for a speaking order and an opportunity for the petitioner to be heard.

This judgment primarily addresses the issue of whether the petitioner is entitled to interest on the seized cash amount and directs respondent No.3 to make a decision on the matter promptly. The court's directive ensures that the petitioner's claim for interest is considered in accordance with the law and that if found valid, the interest amount is released within a specified timeframe.