9911796707
TMI Blog2019 (6) TMI 672X X X X Extracts X X X X X X X X Extracts X X X X ..... on 131 of the Income Tax Act, 1961 on 10th October, 2018, to the Petitioners. There was a search at the bungalow of the Petitioner No.1 by six officials of the Respondents on 17th October, 2018. The Respondents attached the books of account and documents of the Petitioners and took inventory of cash of Rs. 39,600/- lying at the residence of Petitioner No.1. The Respondent No.5 issued an order under Section 132(3) of the Income Tax Act, 1961 against the Bank Manager of Indian Overseas Bank directing him not to remove, part with or otherwise deal with the contents of all types of accounts including saving bank account, recurring deposit account, fixed deposit accounts, current accounts etc., maintained by the Petitioner No.1, his wife and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bimla Singh ( supra). 6. It is submitted by the learned counsel that though the Petitioners have agreed to invoke the provisions of Settlement Commission under Section 245-C of the Income Tax Act, 1961, the Respondents are delaying the proceedings under Section 153-A of the Income Tax Act, 1961. He submits that the amounts which are wrongly encashed by the Respondents from the FDs of the Petitioners and transferred to the PD Account of the Respondent No.2 does not carry any interest. If the Respondents succeed ultimately in the pending proceedings, the Petitioners would lose the substantial amount of interest which would have earned on the FDs of the Petitioners. He submits that the amount encashed by the Respondents from such FDs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon'ble Supreme Court has held that it is impermissible to convert the assets to cash and thereafter impound the same. The Hon'ble Supreme Court in the said judgment has accordingly directed that it would be in the interests of the assessee and the Revenue if the amount transferred to the PD Account of the Commissioner is kept in interest bearing fixed deposit as ultimately in the event the assessee succeeds, he would be entitled to interest as provided in the statute. The Hon'ble Supreme Court in that judgment directed that the assessment has to be completed on or before the time statutorily provided. 11. In our view, the principles laid down by the Hon'ble Supreme Court in the case of KCC Software (supra) apply to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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