TMI Blog2011 (1) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... .17 lacs was made i.e., 15th April, 2008 - the cause of justice would be best subserved if the Revenue pays interest @ 7.5% from 24th March, 2006 till 15th April, 2008 i.e. the date of the refund. - W.P.(C) 7780/2009 - - - Dated:- 18-1-2011 - MR. JUSTICE SANJIV KHANNA, J. For Appellant: Mr. Ankur Saigal, Mr. Gaurav Singh, Advs. For Respondents : Mr. N.P. Sahni, Adv. O R D E R The proceeding under Section 132 of the Income Tax Act, 1961 (for short the Act‟) was carried out at the residential premises of the petitioner, and panchnama was prepared on 12.9.2003. As stated, search and seizure operation, under Section 132 of the Act, was finally concluded. Eventually, as the factual matrix would exposit, the block as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... run from the date immediately following the expiry of the period of one hundred and twenty days from the date on which the last of the authorisations for search under Section 132 or requisition under Section 132-A was executed to the date of completion of the assessment [under Section 153-A or] under Chapter XIV-B. Explanation. In this section, (i) block period shall have the meaning assigned to it in clause (a) of Section 158-B; (ii) execution of an authorisation for search or requisition shall have the same meaning as assigned to it in Explanation 2 to Section 158-BE.] Thereafter, as set forth, the petitioner claimed interest for the delayed payment of the amount of Rs.17 Lakhs with effect from 23.3.2006 till 15.4.2008. As th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1887 of 1992 dated 30.04.1997. Interest on delayed payment of refund was not paid to the appellant on March 27, 1981, and April 30, 1986, due to the erroneous view that had been taken by the officials of the respondents. Interest on refund was granted to the appellant after a substantial lapse of time and hence it should be entitled to compensation for this period of delay. The High Court has failed to appreciate that while charging interest from the assessees, the Department first adjusts the amount paid towards interest so that the principle amount of tax payable remains outstanding and they are entitled to charge interest till the entire outstanding is paid. But when it comes to granting of interest on refund of taxes, the refunds are f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson damnified may receive equal value for his loss, or be made whole in respect of his injury; the consideration or price of a privilege purchased; something given or obtained as an equivalent; the rendering of an equivalent in value or amount; an equivalent given for property taken or for an injury done to another; the giving back an equivalent in either money which is but the measure of value, or in actual value otherwise conferred; a recompense in value; a recompense given for a thing received; recompense for the whole injury suffered; remuneration or satisfaction for injury or damage of every description; remuneration for loss of time, necessary expenditures, and for permanent disability if such be the result; remuneration for the inju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amply met if we order payment of simple interest at 9 per cent. per annuam from the date it became payable till the date it is actually paid. Even though the appellant is entitled to interest prior to March 31, 1986, learned counsel for the appellant fairly restricted his claim towards interest from March 31, 1986 to March 27, 1998 on which date a sum of Rs.40,84,906/- was refunded. The assessment years in question in the four appeals are the assessment years 1977-78, 1978-79, 1981-82 and 1982-83. Already the matter was pending for more than two decades. We, therefore, direct the respondents herein to pay the interest on Rs.40,84,906/- (rounded off to Rs. 40,84,900) simple interest at 9 per cent. per annum from March 31, 1986 to March ..... X X X X Extracts X X X X X X X X Extracts X X X X
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