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TMI Blog2013 (11) TMI 1441X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the petitioner for payment of interest has been rejected and for a mandamus directing the respondents to rectify the order dated 23.04.2010 and allow the interest on the amount retained and refunded, u/s 244A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). 3. Gurvinder Singh (the petitioner), while traveling in the bus, was intercepted by police authorities at Transport Nagar, Jaipur on 13.08.1996. From his possession, cash of Rs. 4,68,000/- and silver ornaments of 211 gms were seized. On receiving information from police, Additional Director of Income Tax (Investigation-IV), Jaipur (hereinafter referred to as 'ADIT'), contacted the police authorities and recorded statement of the petitioner u/s 131 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,38,400/- and on which, income tax of Rs. 3,23,040/- has been assessed. On the basis of the aforesaid order, demand of Rs. 3,23,040/- was raised against the petitioner. The petitioner moved an application dated 23.05.2000 before respondent 4 requesting to adjust the amount of income tax from his seized money. On the basis of the aforesaid application, the amount of Rs. 3,23,040/- was adjusted as income tax and the remaining amount was refunded to the petitioner along with interest under Section 132B of the Act. 5. The petitioner filed an appeal from the order dated 09.05.2000 before the Commissioner, Income Tax (Appeals)-II, Agra, which was dismissed. The petitioner filed a second appeal before the Income Tax Appellate Tribunal, Agra Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reply to the aforesaid arguments, Senior Standing Counsel argued that the amount adjusted towards income tax was lying in P.D. Account of Commissioner of Income Tax (Appeals), Jaipur, as such, no interest was payable on it. He submitted that Section 244A of the Act is applicable where income tax was voluntarily paid on the basis of demand made in regular assessment proceeding. In this case, the income tax was not voluntarily paid, as such Section 244A is not applicable. He submitted that seized amounts are governed by the provisions of Section 132B of the Act and Respondent-2 has already refunded the amount along with interest after deducting the amount of income tax. Accordingly, Section 244A is not applicable for the remaining amount and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t adjusted was lying in P.D. Account of Commissioner of Income Tax (Appeals), Jaipur, and no interest was payable on it or extra burden will be cast on the Revenue as the matter was unreasonably delayed before the Tribunal are concerned, in case, there is statutory provisions then that cannot be ignored on the ground that it will cast an extra burden of the Government . There is nothing on record to suggest that the petitioner was responsible for unreasonable delay. On the other hand seizure of the money of the petitioner was held as illegal as such he was illegally harassed and his money was blocked for his no fault as such statutory liability for payment of interest of the Revenue cannot be absolved on the so called extra burden. 11. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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