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2022 (3) TMI 257 - HC - Income TaxComputation of interest under Section 220(2) - what period interest under Section 220(2) of the Act is applicable? - HELD THAT:- As decided in DAMANI BROTHERS [2002 (12) TMI 11 - SUPREME COURT] interest under Section 220(2) of the Act has to be charged upto the date of the order under Section 245D(1) of the Act. This was also followed by a Division Bench of this Court in Commissioner of Income Tax V/s. Smt. Leonie M. Almeida [2015 (3) TMI 13 - BOMBAY HIGH COURT] where the Court held that interest can be charged pursuant to proceedings in normal course up to the date of decision under Section 245D(1) of the Act to proceed with the application. Payment of tax on the undisclosed income relating to the block period - Whether surcharge at 15% under Section 113 of the Act was payable? - In this case, since the search was carried out on 23rd November 1995 and the proviso to Section 113 of the Act, which provides for levy of surcharge, was introduced only with effect from 1st June 2002, as held by the Apex Court in Vatika Township (P.) Ltd.[2014 (9) TMI 576 - SUPREME COURT]the levy of surcharge cannot be made applicable retrospectively to search conducted in petitioner’s case. Respondent no.3 is directed to issue a fresh assessment order recalculating the tax and interest payable, within four weeks from the date of this order being uploaded/a copy of the order is submitted by petitioner, by not including surcharge at 15% and limiting the interest payable from 5th January 1997, which is the 36th day after the impugned assessment order dated 27th November 1996 was passed, upto 9th April 1997 when petitioner’s application came to be accepted under Section 245D(1) of the Act. Petitioner shall pay the amount, if any, payable within seven days of receiving a copy of the fresh demand.
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