2014 (11) TMI 906

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... stances of the case the Tribunal was justified in holding that the assessee was liable for interest u/s 139(8)/217 for the assessment year 1988-89 and interest u/s 234A & 234B for the assessment year 1989-90 upto 26.3.91 the due date when the return was filed without giving credit of the amount retained by the department u/s 132(5) for meeting future tax liability which was seized on 7.7.1989?" 3.3. The brief facts of the case are that in the course of search under Section 132 B of the Income Tax Act, 1961 on 6thth July, 1989 a sum of Rs. 11,95,660 was seized from the petitioner. Out of this amount as per Sub-clause (i) (ii) (iia) and (iii) of sub-section (5) of Section 132 (as was in enforce) the Assessing Officer provisionally determined .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... seizure because of the reason that assessment could have been made after reasonable time only and not forthwith. It is submitted that by no stretch of imagination, it can be said that said amount was kept by the Revenue for other reason than the assessment against the liability of the petitioner for the tax claimed by the revenue. It is also submitted that if the department keeps the money of anybody, which is not in accordance with law, in that situation also the department is liable to pay the interest. Learned counsel for the petitioner relied upon judgment of the Hon'ble Supreme Court delivered in the case of Sandvik Asia Ltd. Vs. Commissioner of Income-Tax reported in {2006} 280 ITR (SC); Commissioner of Income Tax Vs. Pandurang D .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... assets retained under sub-section(5) of Section 132 is required to be dealt with as Clauses (i) to (iii) and is required to be adjusted as per sub-section 4 of Section 132B. The assets/money retained under sub-section(5) of Section 132, as per-clause (ii) are required to be adjusted in discharge of the liabilities referred to in clause(i) of Section 132B and assessee shall be discharged of such liability to the extent of the money so applied. As per clause (iii) of sub-section (1) of Section 132B, even other assets other than the money retained by the Assessing Officer can be sold out and proceed can be discharged against the liabilities of the assessee. As per sub-section 4(a) of Section 132B, the Central Government is liable to pay simple .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X