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2009 (7) TMI 858 - HC - Income TaxSearch and seizure - Block assessment - Undisclosed income - Interest u/s 158BFA - the very fact that the amount is described as interest is suggestive that it is compensatory in nature and if it has to be compensated in favour of the Revenue it has to be suffering loss of the revenue which is required to be made good - an amount of expenditure by way of interest paid on investment which had been specifically claimed in earlier years and only for the purpose of the amount borrowed for investment in the partnership as by way of assessee's capital contribution to the firm and not in any manner to the firm - the expenditure incurred was such that it was not possible for apportionment of the expenditure to the different business activities carried on by the assessee and as to in respect of which business what amount of interest had been paid It is no doubt true that for quantification of the income/interest, it is linked to the final payment of tax as determined for the block period and at a given percentage every month - sections 158BFA(1) and 158BD as indicated above we are of the opinion that the Tribunal is clearly in error in directing the deletion of the interest part on the tax amount as ultimately determined but for the period during which there is a delay in filing the return - Decided in the favour of the revenue if it is possible to examine the question on legal principle judicial norms and propriety and the provisions of Article 141 of the Constitution do not allow us the liberty or freedom for this and accordingly this question has to be necessarily answered in favour of the Revenue and against the assessee - whether any further directions are required to be issued on perusal of the record, for the present, these appeals are allowed
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