TMI Blog2018 (5) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considering the appeal on the legal issue of leviability of interest u/s. 158BFA(1) without appreciating the legal issues could be raised at any stage? 2. Whether on the facts and in the circumstances of the case, the the Income Tax Appellate Tribunal was right in law in 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? 4. The question which falls for consideration is as to whether from what date interest under section 158BFA(1) of the Income TAx Act, 1961 is leviable. A search was conducted in the premises of the petitioner on 27.03.1998. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Tribunal, by order dated 28.02.2002, remanded two issues to the Assessing Officer for consideration and rejected the ground raised in respect of levy of interest under section 158BFA(1). Pursuant thereto, an order under section 154 was passed levying interest under section 158BFA(1) for 21 months i.e. from 20.07.1998 to 04.05.2000. 7. The question would be whether the levy of such interest for a period of 21 months was just and proper. 8. Though the learned counsel for the Assessee argued that while giving effect to the order of Commissioner of Income Tax (Appeals) no interest was levied, while passing order dated 18.05.2001 and it would be debatable question. We are unable to accept the said submission in the facts and circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for nearly a year and the copies of those documents were furnished to the assessee between 18.06.1999 to 22.06.1999. Thus, the question would be as to how the interregnum period should be treated for the purpose of levying interest under section 158BFA(1). 14. 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. However, 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 pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther levy of interest under section 158BFA(1) is in any way linked to the provisions of section 140A of the Act. Thus, the decision in the case of Commissioner of Income Tax v. K.L.Srihari reported in [2011] 11 taxmann.com 188 (Kar) is not applicable to the facts and circumstances of the present case. 17. Thus, for the above reasons, the appeal filed by the assessee is partly allowed and the substantial question of law No.1 as mentioned above is answered against the assessee and in favour of the Revenue and the substantial question of law No.2 is answered in favour of the assessee and against the Revenue and it is held that the assessee is liable to pay interest only for a period of 11 months from 22.06.1999 to 04.05.2000. No costs. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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