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2011 (6) TMI 146 - HC - Income TaxSearch and seizure - Gold and cash - Advance tax - Adjusted from the amount lying with the Department - Interest - The petitioner submitted that no interest could be charged for non-payment of advance tax was that there was sufficient amount was already lying with the Department - The only reason given by the respondent for not making adjustment from this account is that it was not permissible for the petitioner to seek adjustment from this amount, as this belonged to M/s Foto Traders which was assessed as unregistered partnership and not as the sole proprietorship of the petitioner - However, the petitioner was questioning the assessment of M/s Foto Traders as unregistered partnership firm - He has been proved correct - The arguments of the learned counsel for the respondent that it is only on 07.07.2003 when the Settlement Commission passed the orders u/s 245D(4) of the Act that the amount became available to the petitioner, is without any substance - Merely because order to this effect passed by the Settlement Commission on 07.07.2003 would not mean that it is on this date the amount became available at the hands of the petitioner - Held that: the respondent would not be justified in levying interest, as the amount of advance tax payable by the petitioner for these assessment years could be adjusted from the amount lying with the Department in the petitioner's own account. interest on refundable amount - After giving effect to the orders of the Settlement Commission, the excess amount was not refunded to the petitioner - On this count, the petitioner has demanded interest under Section 132A of the Act - The petitioner would, thus, be entitled to interest under Section 244A of the Act from the date of amount transferred into the account of AO from PD account after adjusting Rs.49,86,500/-, which was the tax due/payable - The amount shall be calculated accordingly.
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