TaxTMI 
TaxTMI 
2013 (7) TMI 40
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....e time of hearing none appeared on behalf of assessee, however, written submission pertaining to 1994-95 and 1998-99 are on heard. The grounds raised by assessee in all the appeals are same and therefore, taking the facts of the case for the AY 1993- 94 in ITA No.3160/Ahd/2011 as a lead case for the sake of convenience we take up all the appeals together and dispose of all in the absence of assessee, on the basis of the written submission filed on behalf of assessee. 3. Ground raised by assessee in ITA No. 3160/Ahd/2011 reads as under:- "1. Assessing Officer has erred in not considering facts of the case while disposing rectification application field u/s. 154 of the Income Tax Act, 1961 for re-computing interest u/s. 220(2) of the Act." ....
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....silver ornaments. He submitted that assessee has realized enhanced price on the date of sale in line with the prevailing price. He submitted that case law as relied by the assessee is on totally difference of the facts. In support of his contention that levy of interest u/s. 220(2) of the Act is automatic, he relied on the following case laws:- a) Super Spinning Mills Ltd. 244 ITR 814 (MAD) b) Girnar Investment Ltd. 340 ITR 529 (Del) c) ANZ Grindlays Bank Plc. 241 ITR 269 (Cal) 6. We have heard the submission made by Ld. DR of the Revenue and perused the materials on record and case law cited by DR of the Revenue and the written submission filed by assessee. The assessee in written submission has submitted as under:- "1. Appeal of asse....
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....concluded expeditiously. 4. After receiving the demand notice in the year 2000, assessee requested the Income Tax Officer to release the seized material or auction the same to recover the demand. However, assessee was compelled to pay the demand from additional sources by keeping aside the seized material in the custody of the department. Inspite of hardship in paying the demand, assessee paid the demand for the AYs 1990-91, 1991-92, 1992-93 & again requested to release the seized material or auction the same so that demand for AYs 1993-94 & 1994-95 can be paid. 5. Inspite of the repeated requests made to Commissioner of Income Tax and Recovery Officer besides Income Tax Officer, assessee's plea was ruthlessly rejected & interest u/s. 220....
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....94, 1994-95 & 1998-99. Inspite of the severe hardship due to closure of regular business, assessee paid the demand for AYs 1990-91 1991-92 & 1992-93 from the sources other than the seized material. Inspite of that, the authorities did not release or auction the seized material even for the demand of AYs 1993-94, 1994-95 and 1998-99. This defeats the very purpose of seizing & retaining the material as authorities were not interest in adjusting the same against the demand liability. This was the clear situation of restricting the assessee from paying the demand. It cannot be said that assessee did not paid the demand or was in default in payment of demand as assessee was left with no option. 8. If there is a loss of interest to the revenue, ....
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....idered the rival contentions, perused the materials available on record. The undisputed facts are that Assessing Officer made an order u/s. 220(2) of the Act levying interest on the outstanding demand. The assessee filed an application for seeking rectification of order made u/s. 220(2) of the Act. The contention made in the application as recorded by Assessing Officer in his assessment order u/s. 154 of the Act dated 05-09-2007 that during the course of search action u/s. 132 of the Act there was a seizure of business stock i.e., gold and silver ornaments which remained in the custody of the Department since 11 years. The assessee claimed the interest on the seized material kept with the Department and requested to adjust the interest levi....
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...., the assessee has not drawn our attention to any such provisions of the Act, that entitles the assessee for interest on the value of the seized material. Hence, this ground of assessee's appeal is dismissed. This being the position, we do not find any infirmity into the order passed by Ld. CIT(A). Hence, this ground of assessee is dismissed. 7. In the result, assessee's appeal stands dismissed. Coming to assessee's appeal in ITA No.3161/Ahd/2011 (AY) 94-95. 8. The facts and the issues are identical and taking a consistent view in ITA No.3160/Ahd/2011 in para-6 and 6.1 of this order this appeal of assessee is also dismissed. 9. In the result, assessee's appeal is dismissed. Coming to assessee's appeal in ITA No.3162/Ahd/2007 (AY) 98-99....