TMI Blog2020 (4) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... on 244A of the Act. Sections 132B and 244A of the Act are independent provisions and are not over-lapping. Rather, Section 132B(4) of the Act deals with interest for the period from seizing of the amount till finalisation of the assessment and Section 244A of the Act operates for the period after the refund has become due under the Act. Madhya Pradesh High Court in Manohar Lal's case [2001 (2) TMI 99 - MADHYA PRADESH HIGH COURT ] took a view that Section 132B of the Act is a self contained code, the assets seized have to be dealt with under Section 132(6) of the Act and payment of interest is to be made under Section 132B(4) of the Act and Section 244 of the Act had no application. With utmost respect, we are not in agreeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal was partly allowed on 27.8.2014. Thereafter, proceedings under Section 263 of the Income Tax Act, 1961 (for short, 'the Act') were undertaken and the order dated 21.1.2014 passed by the Assessing Officer was set aside. The Assessing Officer was directed to decide the matter afresh after giving opportunity of hearing to the assessee and examining the evidence. An appeal was preferred against the revisional order, the Tribunal allowed the appeal on 26.8.2016 allowed the appeal and order of revision was quashed. The order of the Tribunal was accepted by the revenue. Inspite of various requests, the amount seized was refunded to the petitioner only on 4.7.2017. As the amount was kept For almost 5 years, the petitioner approached ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requisitioned assets. 132B. (1) The assets seized under section 132 or requisitioned under section 132A may be dealt with in the following manner, namely:- xx xx xx (4)(a) The Central Government shall pay simple interest at the rate of one-half per cent for every month or part of a month on the amount by which the aggregate amount of money seized under section 132 or requisitioned under section 132A, as reduced by the amount of money, if any, released under the first proviso to clause (i) of sub-section (1), and of the proceeds, if any, of the assets sold towards the discharge of the existing liability referred to in clause (i) of sub-section (1), exceeds the aggregate of the amount required to meet the liabilities refer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such interest shall be calculated at the rate of one-half per cent for every month or part of a month comprised in the period, from the date of furnishing of return of income or payment of tax, whichever is later, to the date on which the refund is granted: Provided that no interest under clause (a) or clause (aa) shall be payable, if the amount of refund is less than ten per cent of the tax as determined under subsection (1) of section 143 or on regular assessment; (b) in any other case, such interest shall be calculated at the rate of one-half per cent for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the amount was not refunded till 4.7.2017. The area of operation of Section 132B(4) of the Act ends with the completion of assessment. If there is delay thereafter in refunding the amount, Section 244A of the Act takes such a case within its ambit, it deals with payment of simple interest where refund becomes due to the assessee under the Act. Clause (b) of Section 244A of the Act talks of all other cases than mentioned in clause (a) and (aa) for giving interest from the date of payment to the date on which the refund is granted. The refund of amount became due to the petitioner under the Act after finalisation of the assessment i.e. 21.1.2014 and the same was refunded on 4.7.2017, in such circumstances, the case is covered under claus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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