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2019 (2) TMI 418 - HC - Income TaxSeeking interest on return of seized cash after adjustment of tax - assessee shown the amount of cash seized as advance tax in the ITR which was not accepted and an independent demand of tax was raised - Held that:- Admittedly, the assessment for the Assessment Year 2015-16 has not been done under Section 153(A) or Chapter XIV-B of the Act. It has been done under Section 143(3) of the Act. Therefore, on a plain and strict reading of Section 132B(4) of the Act, no interest can be granted under Section 132B(4) of the Act, as it only provides for grant of interest by fixing the termination date for it as the date of completion of the assessment under Section 153A or Chapter XIV-B of the Act i.e. special provision for assessment to be done on account of search proceedings. The grant of interest under the provision of Section 132B of the Act even where assessment is completed under Section 143(3) of the Act should have been explicitly provided therein. It is not permissible for us to read something into the statutory provision, which is not there. However, though the Revenue did not accept the declaration made by the petitioner in its return of advance tax, the fact is that the petitioner claimed it to be tax. Therefore, on the date the demand notice under Section 156 of the Act was issued, there was an excess amount with the Revenue which the Petitioner was claiming to be tax. Therefore, in terms of the Explanation to Section 244A(1)(b) of the Act the amount of ₹ 35 lakhs was the excess tax (on change of its character from seized amount to tax paid), the petitioner is entitled to interest of ₹ 35 lakhs w.e.f. 16th December, 2016 on the passing of assessment order. - Interest @6% allowed. - Decided partly in favor of assessee.
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