Compensatory interest on wrongfully retained seized cash can follow restitutionary principles even without an express post-assessment provision.

Where seized cash was retained beyond the statutory period and the assessment under section 143(3) resulted in nil income, the Court held that the revenue could still be required to pay compensatory interest for the delayed release. Section 132B(4) governs interest up to completion of assessment, but the absence of an express post-assessment provision did not bar restitutionary relief when the money was wrongfully withheld without fault of the assessee. Compensation by way of interest was therefore justified for the period after the assessment, after crediting interest already paid.

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Issues: Whether the assessee was entitled to compensation or interest for the delay in releasing seized cash after the assessment had been completed and the liability found to be nil.

Analysis: The seized cash was retained beyond the statutory period and was not released when the assessment orders under section 143(3) resulted in nil income. The provision governing release of seized assets, section 132B(4), specifies the statutory interest period up to completion of assessment, but it does not bar the Court from granting compensation where the revenue wrongfully withholds money beyond that point without fault of the assessee. Applying the restitutionary principle and relying on the approach approved in earlier decisions on delayed payment by the revenue, the delay in release of the remaining amount justified compensation by way of interest for the subsequent period. The Court also held that the revenue authorities could not avoid liability merely because the statute did not expressly provide for post-assessment compensation.

Conclusion: The assessee was entitled to compensation by way of interest at 6% per annum for the delayed period from 03.03.2018 to 23.12.2019, after crediting the interest already paid.

Ratio Decidendi: Where seized money is wrongfully retained by the revenue beyond the period contemplated by section 132B(4), the absence of an express post-assessment provision does not prevent the Court from awarding compensatory interest on restitutionary principles.

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