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TMI Blog2020 (4) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... Further prayer is for direction to the respondents to pay interest on the seized amount for the period from 21.1.2014 to 4.7.2017. The facts are that cash of Rs. 15,02,530/- was seized by the Investigation Wing of Income Tax Department from the petitioner on 6.1.2012, while he was travelling from Patiala to Mansa. The cash was impounded vide intimation dated 12.1.2012. The petitioner filed return declaring total income of Rs. 2,04,330/-. The assessment for the year 2012-13 was framed vide order dated 21.1.2014 whereby addition of Rs. 50,000/- was made. Aggrieved of the assessment order, an appeal was filed and addition of Rs. 50,000/- was reduced to Rs. 35,000/- by the 1st Appellate Authority, the appeal was partly allowed on 27.8.2014. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of Madhya Pradesh High Court in Manohar Lal v. Commissioner of Income Tax and others, (2001) 249 ITR 1. It would be pertinent to note here that the respondents have not controverted the factual position that there was no demand pending against the petitioner for the said period. There is no plausible reason put forth justifying non-refund of amount even after finalisation of the assessment and the fact that the order of the Tribunal setting aside the revisional order was accepted by the revenue. The provisions of Sections 132B(4) and 244A of the Act and Article 300A of the Constitution of India are quoted below: "Sections 132(B) and 244A of the Act Application of seized or requisitioned assets. 132B. (1) The asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y way of advance tax or treated as paid under section 199, during the financial year immediately preceding the assessment year, 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,-- (i) from the 1st day of April of the assessment year to the date on which the refund is granted, if the return of income has been furnished on or before the due date specified under sub-section (1) of Section 139; or (ii) from the date of furnishing of return of income to the date on which the refund is granted, in a case not covered under sub-clause (i); (aa) where the refund is out of any tax paid under section 140A, such interest shall be calculated at the rate of one-half ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... violates Article 300-A of the Constitution of India. In the absence of any legal backing for not refunding the seized amount to the petitioner entitles him to interest even under general law. Be that as it may, the provision of interest on delayed refund is there in Section 244A of the Act. There is no quibble with the proposition that Section 132B(4) of the Act deals with interest to be paid after 120 days of the date of last authorisation till the date of completion of assessment under Section 153A or Chapter XIV-B of the Act. The said provision cannot be read in isolation especially in the facts of the present case where inspite of completion of assessment on 21.1.2014, the amount was not refunded till 4.7.2017. The area of operation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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