Seized cash adjusted against advance tax bars section 215 interest where no referable question of law arises.

Appropriation of seized cash towards an assessee's advance tax liability meant the Tribunal was justified in cancelling interest levied under section 215 of the Income-tax Act, 1961. The High Court found no error of law in the Tribunal's view that, once the recovered amount was adjusted against advance tax, interest could not be sustained on that basis. It therefore held that no referable question of law arose under section 256 of the Income-tax Act, 1961, and the petition failed.

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Issues: Whether, on the facts and in the circumstances of the case, any referable question of law arose from the Tribunal's decision cancelling interest charged under section 215 of the Income-tax Act, 1961, after directing appropriation of seized cash towards advance tax.

Analysis: The Tribunal had held that once the amount recovered during the raid was adjusted towards the assessee's advance tax liability, the assessing authority could not invoke section 215 to levy interest. The Court found no error of law in that view and held that the Tribunal's conclusion did not give rise to any question warranting reference under section 256 of the Income-tax Act, 1961.

Conclusion: No referable question of law arose, and the petition failed.

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