2016 (12) TMI 504

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.... has actually filed the returns and paid the tax even before the due dates. 3. The petitioner owned land which was acquired under the Land Acquisition Act, 1894. An award dated 05.07.1990 was made. The petitioner applied for the enhancement of compensation under section 18 of the Land Acquisition Act. By an order and judgment dated 05.03.1997, the Additional District Judge/Reference Court enhanced the compensation. On 29.09.1998 a voucher was issued for the release of the enhanced amount. The enhanced amount was credited to the petitioner's account on 03.10.1998. 4. On 13.10.1998 the petitioner's account was attached by the respondents under section 281-B of the Act. This resulted in attachment of a Fixed-Deposit Receipt (FDR) in the ....

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....r ought in these circumstances to be made liable for interest under section 234-A and 234-B of the Act. The respondents exempted the interest under section 234-A till 30.11.1998. This was in view of a circular dated 02.05.1994 issued by the CBDT under section 119(2)(a) of the Act. The respondents, therefore, made the petitioner liable for interest from 01.12.1998 till 07.01.1999 i.e. the date on which the account of the Income Tax Officer was credited with the tax dues. Even if the petitioner was made liable to pay interest it should have been only upto 23.12.1998 i.e. the date on which the respondents received the petitioner's letter dated 21.12.1998 calling upon the respondents to adjust the tax dues against his account attached on 13.10.....