2013 (11) TMI 1441

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....r, Agra (respondent-4) by which, the application of the petitioner for payment of interest has been rejected and for a mandamus directing the respondents to rectify the order dated 23.04.2010 and allow the interest on the amount retained and refunded, u/s 244A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). 3. Gurvinder Singh (the petitioner), while traveling in the bus, was intercepted by police authorities at Transport Nagar, Jaipur on 13.08.1996. From his possession, cash of Rs. 4,68,000/- and silver ornaments of 211 gms were seized. On receiving information from police, Additional Director of Income Tax (Investigation-IV), Jaipur (hereinafter referred to as 'ADIT'), contacted the police authorities and recorded st....

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....ioner for the block period was held to be Rs. 5,38,400/- and on which, income tax of Rs. 3,23,040/- has been assessed. On the basis of the aforesaid order, demand of Rs. 3,23,040/- was raised against the petitioner. The petitioner moved an application dated 23.05.2000 before respondent 4 requesting to adjust the amount of income tax from his seized money. On the basis of the aforesaid application, the amount of Rs. 3,23,040/- was adjusted as income tax and the remaining amount was refunded to the petitioner along with interest under Section 132B of the Act. 5. The petitioner filed an appeal from the order dated 09.05.2000 before the Commissioner, Income Tax (Appeals)-II, Agra, which was dismissed. The petitioner filed a second appeal bef....

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....on of the petitioner claiming the interest. 7. In reply to the aforesaid arguments, Senior Standing Counsel argued that the amount adjusted towards income tax was lying in P.D. Account of Commissioner of Income Tax (Appeals), Jaipur, as such, no interest was payable on it. He submitted that Section 244A of the Act is applicable where income tax was voluntarily paid on the basis of demand made in regular assessment proceeding. In this case, the income tax was not voluntarily paid, as such Section 244A is not applicable. He submitted that seized amounts are governed by the provisions of Section 132B of the Act and Respondent-2 has already refunded the amount along with interest after deducting the amount of income tax. Accordingly, Section....