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2018 (5) TMI 714 - HC - Income TaxLeviability of interest u/s. 158BFA(1) - whether from what date interest under section 158BFA(1) of the Income TAx Act, 1961 is leviable? - Tribunal upholding the interest u/s. 158BFA(1) even for the period of delay in filing the return of income, caused due to delay in obtaining copies of the seized materials from the Income Tax Department, which was beyond the control of the appellant? - whether the levy of such interest for a period of 21 months was just and proper? Held that:- We are convinced to take a stand in favour of the assessee for the reason that the assessee was requesting for copies of the seized documents for nearly a year and the copies of those documents were furnished to the assessee between 18.06.1999 to 22.06.1999. On a reading of statutory provision one gets an impression that no such plea is entertainable and limitation does not stop and continues to run upon issuing notice under section 158BC. We cannot ignore the principles of natural justice, which will have to be read into the provision, as the assessee without being supplied with the necessary documents, which were seized during the course of search, would not be in a position to file a proper return. Law does not compel a person to perform that which is impossible. Admittedly, the delay in not filing the return after the notice dated 20.07.1998 is not attributable to the assessee. No where, the Revenue has taken a stand that the request made by the assessee for supply of seized documents was either unreasonable or uncalled for. Later, the department has furnished the photostat copies of the seized documents. Therefore, the period during which the assessee was waiting for the copies of the documents, which were seized, has to be necessarily excluded and if this is excluded, the period between 1998 to 22.06.1999 has to be necessarily excluded. Case of Commissioner of Income Tax and another v. B.Nagendra Baliga [2014 (6) TMI 114 - KARNATAKA HIGH COURT] to be followed.
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